Aussie bond futures were quick to......>

AUSSIE BONDS: Aussie bond futures were quick to unwind the knee jerk lower on

the back of the Xinhua headlines re: the latest Sino-U.S. trade phone call, with

the call not as +ve as the initial take from markets. Continued focus on RBA

Gov. Lowe's address, scheduled for 20:05AEDT this evening. YM closed +0.5, XM

+1.5, with Bills +1 to -1 tick thru the reds.

- RBA Deputy Gov. Debelle provided little new in his earlier address. As we

mentioned at the time, the RBA's NAIRU estimate of 4.5% seems a long way off at

present, and this builds nicely into the unconventional MonPol topic of Lowe's

evening address, especially given the RBA's apparent desire to avoided a

negative interest rate environment.

- Corporate issuance saw OCBC Sydney price A$500mn worth of 3-Year green FRN at

swaps +63bp, while Bank of Australia priced A$125mn worth of 3-Year sustainable

FRNs at swaps +90bp. ACGB I/L supply saw a moderation in the cover ratio,

despite the smaller size on offer vs. the prev. auction.

- Wednesday's local docket includes Q3 completed construction work & A$1.2bn

worth of ACGB 1.50% 21 June 2031 supply.