Aussie bond futures traded in a........>

AUSSIE BONDS: Aussie bond futures traded in a lacklustre fashion, edging away

from best levels, as risk-assets extended on their early bid in Asia-Pac trade,

although the contracts have operated in tight ranges. YM -1.5 tick, while XM

trades 2.0 ticks lower. YM/XM last 51.5. Cash 3-/10-Year yield differential last

48.5bp. AU/U.S. 10-Year yield spread last -42.9bp.

- Commentary from China policymakers re: stimulatory economic measures focused

on fiscal momentum. Also worth noting that the PBoC stated that it will "further

increase policy flexibility."

- Corporate issuance saw EDC launch A$200mn tap of its May 2023 line, while EIB

tapped its Aug 2024 line at swaps +47bp fow A$550mn.

- Bills continue to operate on ltd volume, with whites & reds last 1 to 3 ticks

lower. Funding pressures coming under scrutiny again. 3-Month BBSW fixing edged

higher. RBA repo op rates continue to tick higher, with $560mn worth of 27-Day

ops dealt at 2.068% & A$1.430bn worth of 56-Day ops dealt at 2.049%.

- Housing finance, due Thurs, headlines the AU docket this week, so broader risk

themes including China, Brexit & Fedspeak are likely to drive activity.