Aussie bonds were supported by.........>

AUSSIE BONDS: Aussie bonds were supported by broader flows into core FI and then

drew further support from monetary policy goings on across the Tasman as the

RBNZ delivered a shock 50bp cut to its OCR, with further dialogue surrounding

work on extraordinary monetary policy measures noted.

- YM +6.0, XM +9.0, leaving YM/XM flatter at 33.5.

- There was a solid enough auction of ACGB 1.50% 21 Jun 2031 with the average

yield 0.15bp below the yield of the line at the time of issuance. Cover ratio a

touch disappointing when adjusted for size vs. prior auction, but didn't

represent anything dreadful given that Friday's auction of ACGB 3.25% 21 April

2029 was under 3.00x times covered. As mentioned in our auction preview, demand

for duration was likely to provide some underlying support at today's auction

when compared to Friday's offering.

- Highlights of corporate supply saw ING launch A$ 5-Year fixed and/or floating

covered paper, with ADB launching min. A$300 min of 5-Year paper.

- Local housing finance data had no tangible impact on market.

- Bills deal 5-6bp higher through the reds.