Aussie bonds were bid on Wednesday,....>

AUSSIE BONDS: Aussie bonds were bid on Wednesday, aided by the well supported

A$3.5bn opening of ACGB 1.25% 21 May 2032. There was also some focus on an AFR

article titled "Government's debt manager readies for QE," although the content

was less punchy than the headline, as AOFM chief Nicholl noted that "the most

important thing the market needs to understand about QE is that the AOFM and the

RBA won't be at odds if QE comes to pass, and I'm not going to say it will come

to pass." Bond futures settled just shy of best levels with YM +4.0 & XM +4.5,

seemingly a little hesitant to extend meaningfully through the SYCOM highs,

although 10s still outperformed their U.S. counterpart, tightening by ~4.1bp vs,

Tuesday's closed. Participants also keep at least some of their focus on the

Coronavirus situation in China.

- Bills 1 to 5 ticks higher through the reds, with flattening evident.

- Local data saw a softer Westpac consumer confidence print, while skilled job

vacancies edged higher.

- The local labour market report headlines tomorrow's local docket, with the

monthly Melbourne Institute inflation expectations also due.