Aussie bonds looked through the........>

AUSSIE BONDS: Aussie bonds looked through the government's fiscal package, at

least at first glance, with no real sense of shock and awe (perhaps a little

uptick vs. expectations in terms of payouts to pensioners & those using the

benefit system), tracking the broader risk impulse. YM settled +0.5, XM -8.5.

- The steepening bias vs. yesterday's close held despite a brief pullback during

the peak of the Trump driven risk-off flows, before it extended into the close,

likely on exp. of fresh issuance from the AOFM to finance the government's

spending plan. The AOFM has since noted that "as a result of the announced

fiscal measures Treasury Bond issuance of $1.2 to $1.6 billion is planned for

most coming weeks. An announcement about planned total issuance for this year

will be made following the release of the 2020-21 Budget. The AOFM is closely

monitoring market conditions and will be mindful of these when planning issuance

for any particular week. No new maturities are planned for the remainder of this

financial year."

- Bills finished +1 to -2 through the reds.

- The AOFM's weekly issuance schedule headline's tomorrow's local docket.