Aussie bonds were hit hard on the......>

AUSSIE BONDS: Aussie bonds were hit hard on the back of the notable turnaround

in risk assets, which, as mentioned elsewhere, lacked a clear catalyst. Domestic

equities staging an almighty recovery, and then some. YM -12.0, XM -21.0 come

the close.

- The AOFM's weekly issuance was paltry, and delayed vs. the normal release

time. Worth noting that when accounting for buybacks, next week is likely to see

a flat coupon issuance profile (A$500mn to be auctioned vs. A$500mn of

buybacks), Outright, next week's issuance profile is well short of the

A$1.2-1.6bn outlined yesterday.

- Bills 8-17 ticks lower through the reds come the end of play.

- Funding pressures still evident with 3-Month Bill/OIS back to the top of the

recent range.

- RBA active in repo today, with A$8.835bn dealt across the 17-, 27- & 95-day

maturities vs. estimated requirements of A$3.74bn. 95-day ops saw a weighted

average rate of ~41.0bp over 3-month OIS.

- 3-Month AUD/USD x-ccy basis tapped 50bp at one point.