Bond futures have backed away from.....>

AUSSIE BONDS: Bond futures have backed away from early highs, as broader risk

appetite has recovered, in what has been a lacklustre session thus far.

- Broader gyrations in risk appetite have largely set the tone.

- AU 3-/10-Year cash yield differential last 62.9bp, ~1.0bp flatter on the day,

with the AU/U.S. 10-Year cash yield spread last -44.5bp.

- Looking at the corporate slate, JPMorgan have launched a multi-tranche A$

offering, while Toyota Finance Australia have mandated banks as they consider a

3- or 5-Year A$ deal. As a reminder, late on Friday the AFR reported that

Lendlease had to abandon its A$500mn bond issue on the back of a material

write-down.

- On the semi front, SAFA are re-opening up to A$1bn of its May 2028 line, with

guidance of 10-Year futures +48-49.

- 3-Month BBSW fixed 0.12bp higher today, with Bills unchanged to 3 ticks

higher.

- Focus this week moves to AU labour market data, wage prices, inflation exp.,

biz/consumer confidence, as well as an address from RBA Dep. Gov. Debelle.