Aussie bond futures have recovered.....>

AUSSIE BONDS: Aussie bond futures have recovered from overnight lows, but hold

lower than settlement after another round of steepening on SYCOM, which took

place alongside a Tsy sell off. YM -1.5, XM -4.5, leaving YM/XM at 38.0 and the

cash equivalent at 37.1bp. Bills unch.-1 tick lower through the reds.

- Latest round of ACGB May 2030 supply saw solid enough demand.

- As mentioned earlier there was a lack of evidence of a continued sizeable wash

out of longs in YMZ9 during yesterday's post-RBA price action, open interest

+~4.8K on Tuesday, although XMZ9 open interest was -~7.1K on the day following

the notable dips in open interest that were seen in Monday's sell off. The

steepening pressure/trimming of open interest resulted in a fresh contract low

for XMZ9 on SYCOM.

- Little to wet the whistle on the local docket for the remainder of the local

session. Some focus trans-Tasman on the latest NZ labour mkt report, which

revealed higher than exp. participation & unemployment rates (at the margin) and

disappointing average hourly earnings, although private wage metrics were in

line with Q/Q exp.