Aussie Bonds were steeper vs...........>

AUSSIE BONDS: Aussie Bonds were steeper vs. settlement for the duration of the

Sydney session. Stronger than exp. Chinese GDP provided little impetus for the

space. YM unch., XM -1.5.

- Participants were happy to look through June's local labour market report,

with a much higher than expected uptick in the number of employed being solely

driven by part-time roles. Also, the ongoing COVID-19 backdrop/recent flare up

in Victoria leaves lingering questions, with focus on next week's Treasury

announcement re: fiscal support beyond the end of September. Still, the larger

than expected uptick in participation pushed the unemployment rate higher.

Underutilisation and underemployment moderated, but still remain elevated. Hours

work moved higher in June, but still sit ~6.0% below pre-COVID levels.

- The daily Victoria COVID-19 case count topped 300.

- Elsewhere, the government outlined a A$2.0bn package to support the

development of skills within the labour market.

- Looking to Friday, A$1.0bn worth of ACGB 1.50% 21 June 2031 headlines the

local docket.