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

AUSSIE BONDS: Bond futures continue to trade off of the early lows, after the

softer than exp AU building approvals data lent support. YM last 1.5 ticks lower

on the day, with XM 4 ticks lower. YM/XM trades 1.5 steeper at 52.5, with the

cash 3-/10-Year yield differential last 49.5bp. The AU/U.S. 10-Year yield spread

trades at -39.4bp.

- 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.

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