Australian bonds took their impetus....>

AUSSIE BONDS: Australian bonds took their impetus from the broader risk

backdrop, before some month-end extension flows crept in ahead of the close,

which left YM & XM +0.5 tick & +1.0 tick at the bell.

- The AOFM's weekly issuance schedule revealed that a A$2.5bn tap of ACGB 2032

1.25% 21 May 2032 is scheduled for Wednesday. There was no tangible

underperformance for the line in the wake of the announcement, which although

was expected, is large in size terms (a little over A$2.9mn in DV01)

- Local PPI eased a touch, while private sector credit growth ticked higher.

- Bills finished unchanged to 1.0 tick lower through the reds.

- The RBA provides the focal point of next week's local docket, with most

analysts pushing back their calls for a cut in lieu of the recent tier 1 data,

and IBs pricing a mere ~13% chance of a cut next week. Communication will be

eyed after the 2-month hiatus, as the market looks for clues re: the RBA's

assessment of recent data, given that it is seen as "less weak" as opposed to

good, which probably falls in with the RBA's current easing bias, but view of a

gentle turning point in the economy.