Aussie bond futures ticked back to.....>

AUSSIE BONDS: Aussie bond futures ticked back to unch. levels on the back of a

dip in the latest NAB biz confidence reading. Looking into the details of the

release revealed that the employment sub-metric edged higher, extending on the

uptick from the -ve read in April. YM & XM both trade at unchanged levels at

writing, with YM/XM at 40.5 ticks and the cash equivalent at 36.3bp.

- Some interest was given to the APRA announcement which revealed that it will

require the major banks to lift Total Capital by 3 percentage points of RWA by 1

Jan '24 (the long term target is a 4-5pp increase). Fitch noted that "the final

Australian loss absorbing capacity (LAC) rules represent an easing from the

original proposals published in November 2018 and should allow banks to more

easily meet the requirements."

- Bills trade 1 tick lower to 1 tick higher through the reds. RBA repo

operations saw A$505mn worth of 15-day operations dealt at an average of 1.261%,

with A$1.602bn worth of 85-day operations dealt at an average of 1.215%.

- Westpac consumer confidence and ACGB 2.50% 21 May 2030 supply headline the

domestic docket tomorrow.