Aussie bond futures have edged.........>

AUSSIE BONDS: Aussie bond futures have edged lower, operating just above worst

levels at writing.

- YM last -4.5 ticks, with XM -5.5 ticks. YM/XM deals at 41.5 ticks, with the

cash equivalent at 39.4bp. A market source highlighted some interest in YM/XM

curve longs at 41.0 ticks after a low of 39.5 printed on SYCOM.

- NSW issuance may had added some extra weight to the space.

- Decent upward revisions to the 2nd estimate of 19/20 CapEx exp. negated the

weak headline Q1 CapEx & building approvals prints, after a knee-jerk higher on

the release.

- Bills trade 2-5 ticks lower thru the reds. RBA repo ops saw A$1.16bn worth of

18-day ops dealt at an average of 1.523%.

- Private sector credit headlines the domestic docket tomorrow, but Chinese PMI

data will likely set the tone in Asia-Pacific hours. On the issuance front I/L

supply and the AOFM's weekly issuance schedule will be of interest.