Aussie Bonds also edged lower on the...>

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

they tracked U.S. Tsys on SYCOM. Although mortgage rate hikes from ANZ & CBA,

following Westpac's move last week, supported the space later on. The domestic

3-/10-Year cash yield differential hovers just shy of 57.0bp, running a little

steeper on the day on the back of the mortgage rate moves, while the AU/U.S.

10-Year yield spread sits near enough unch. at ~34.0bp.

- The Bill strip deals unchanged to 3 ticks higher last with flattener interest

on the back of the mortgage rate adjustments.

- Corporate issuance has continued at a healthy clip, with Paccar Fin'l

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

new A$ benchmark covered bond. Kommunalbanken also priced a A$50mn tap of its

April 2021 Kangaroo Bond. TCV priced a A$850mn addition to its Oct '28 line,

with Australian Factoring mandating banks for 3-Year Notes.

- Sovereign issuance generates the largest interest on the docket on Friday with

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