Aussie Bonds also edged lower on the...>

AUSSIE BONDS: Aussie Bonds also edged lower on the North Korea headlines, after

AU Bonds tracked U.S. Tsys on SYCOM, largely driven by Brexit related news flow.

- The domestic 3-/10-Year cash yield differential hovers just above ~56.0bp,

running a little steeper on the day, while the AU/U.S. 10-Year yield spread sits

near enough unch. at ~33.5bp.

- The Bill strip deals 1 tick lower to 1 tick higher last. 3-Month BBSW fixed

~0.25bp higher today.

- Corporate issuance has continued at a healthy clip, with Paccar Financial

launching a minimum of A$100mn worth of 4-Year Notes & Suncorp Metway launching

a new A$ benchmark covered bond package. Both lines should price later today.

Kommunalbanken also priced a A$50mn tap of its April 2021 Kangaroo Bond. -

Sovereign issuance generates the largest interest on the docket over the next 2

sessions with the AOFM set to sell A$1.0bn worth of 2.50% 21 May 2030 Bonds

tomorrow.