Aussie bonds also saw some.............>

AUSSIE BONDS: Aussie bonds also saw some flattening during Sydney trade, aided

by the broader feel of caution, YM unch. at typing, with XM +2.0, although the

latter saw a brief blip lower on the back of one of the weaker ACGB auctions in

recent times. The A$2.0bn 1.25% 21 May 2032 offering saw the lowest bid/cover

ratio for an ACGB auction since the RBA's YCC got underway (although when

adjusted for size the cover ratio was stronger than the previous A$1.0bn tap of

the line), with only a marginal stop through pre-auction yields & a widening

average-high yield differential when compared to the previous auction.

- Elsewhere familiar matters were at the fore, with Sino-Australian tensions and

trans-Tasman travel bubble speculation ongoing. Worth noting that Australian

Trade, Tourism and Investment Minister Birmingham told the AFR that "it's sadly

very unlikely that our health crisis is likely to facilitate an opening to

international travel this year" (although this doesn't rule out a trans-Tasman

bubble).

- Bills unchanged to +3 through the reds, flattening vs. settlement.

- May's labour market report headlines the local docket tomorrow.