Aussie bond futures stuck to a tight...>

AUSSIE BONDS: Aussie bond futures stuck to a tight range, with YM closing -3.5,

XM -5.5, leaving the curve 2.5 steeper at 46.5. Bills shut 1-3 ticks lower

through the reds. There was no reaction to the local monthly trade data, which

saw a wider than exp. surplus for Nov, with Oct's surplus being revised

narrower. Elsewhere there was some focus on corporate issuance:

- IPT on BNP Paribas' A$ fixed and/or FRN 7.5-Year given at +140-145BP AREA

- EIB launched a A$300mn minimum tap of its 2025 Kangaroo line at ASW +40BP

- Westpac announced a new US$ 3-Year Fixed/FRN and 10-Year fixed round of

issuance, and also mandated banks for a potential 5-Year US$ covered deal,

extending the recent run of top tier Aussie banks issuing paper abroad.

- Notes also continue to trickle in suggesting that the bushfires are making an

RBA cut in Feb more likely, IB's price a 52% chance of such a move at present.

- There was a buyer of 5.0K of the YMG0 99.30/99.40 call spread vs. selling YMG0

99.10 puts, with the package trading at 0.0. Source noted that paper has the

same structure on in F0 options, but in 10.0K, which expires on 15 Jan.

- Retail sales & next week's AOFM issuance schedule headline Friday's docket.