Aussie bond futures initially edged....>

AUSSIE BONDS: Aussie bond futures initially edged higher in Sydney, with locals

seemingly happy to take advantage of 10-Year yield levels > 1.00% (several

strategists have identified this area as a line in the sand in recent weeks),

which helped drag XM away from SYCOM lows. YM had less conviction re: regaining

broken support, with no sign of the RBA re-commencing bond purchases to

reinforce its 3-Year yield target, as that metric printed as high as 0.278%.

Some have suggested that 0.30% could be the trigger to lure the RBA back in.

- YM -1.0 & XM -5.5 last, with upside momentum waning a little in recent trade,

although the contracts remain above their SYCOM lows.

- On the fiscal front the government announced grants worth A$25,000 for

eligible singles and couples planning to build or renovate homes between June

and the end of this calendar year, with the uncapped program estimated to cost

taxpayers ~A$688mn.

- On the supply front NTTC priced a A$195m tap of its April 2033 line at

EFP+132bp, while KfW priced a A$200mn Tap of its June 2022 Bond at swaps +34bp.

- Eyes on ACGB '32 supply and the AOFM weekly issuance schedule tomorrow.