Aussie Bonds have outperformed Tsys,...>

AUSSIE BONDS: Aussie Bonds have outperformed Tsys, with the AU/U.S. 10-Year

yield spread last trading at ~37.0bp.

- The latest adjustment to the BOJ's Rinban operations eventually spread to AU

Bonds, but the move in Aussie paper was limited.

- The space may have drawn some support from S&P affirming Australia's AAA

credit rating, and raising its outlook to stable from negative.

- Focus continues to fall on the funding space. 3-Month BBSW fixed 0.5bp higher

today, however, it still remains overshadowed by the recent jump in repo rates

ahead of quarter end.

- The Bill strip trades 2 ticks lower to unchanged last, as the front contracts

underperform.

- Next week's AOFM schedule is relatively duration heavy, as it brings A$800mn

of the 2.75% 21 November 2029 bond & A$1.5bn of the 2.50% 21 May 2030 bond to

market.