Bond futures continue to trade.........>

AUSSIE BONDS: Bond futures continue to trade around their SFE session highs,

after drawing support from the softer than exp AU building approvals data, which

allowed the space to move off of session lows, against a backdrop of broader

risk-on flows. YM last 1.5 ticks lower on the day, with XM 3.0 ticks lower.

YM/XM trades 1.0 steeper at 52.0, with the cash 3-/10-Year yield differential

last 49.5bp. The AU/U.S. 10-Year yield spread trades at -38.9bp.

- Fitch highlighted that a slowdown in the global economy will soften exp.

Aussie federal revenues & may force the gov't to loosen its purse strings, which

would ultimately stop the gov't from reaching a return to a budget surplus next

year.

- Bills trade unchanged to 2 ticks lower at writing. IB flow has garnered more

interest, than the Bill space, with 12.0K IBF9 & 10.0K IBG9 changing hands as

buyers drove flow, although both contracts trade unchanged on the day.

- RBA Reverse repo ops saw $1.02bn worth of 20-Day ops dealt at 2.017% & $1.87bn

worth of 40-Day ops dealt at 2.010%.

- IFC launched a minimum A$200mn tap of its 2023 line at swaps ~+40.