Bond futures have ticked away from.....>

AUSSIE BONDS: Bond futures have ticked away from SYCOM/early SFE lows, with

T-Notes also edging away from worst levels. Soft Westpac consumer conf.

data/negative Asia equites have also underpinned. The domestic 3-/10-Year yield

differential hovers around ~57.5bp, while the AU/U.S. 10-Year yield spread has

moved to ~-38.5bp, with the longer running theme of outperformance in AU paper

vs. Tsys holding true.

- Focus remains on corporate issuance, with swappable paper adding another

degree of support to the space. Press reports suggest that AT&T's touted

Kangaroo Bond could be sized up to A$2bn, elsewhere GPT Re. launched A$100bn

worth of 6-Year paper and SocGen mandated banks for 5-Year A$ paper. On the

semi/muni front the SAFA priced A$500mn of its Sep '22 line at +37.75bp vs. ACGB

Jul '22, and A$500mn of its July '26 line line at +49.75bp vs. the ACGB Apr '26

(both were taps). TD priced $1.0bn worth of 3-Year FRN late on.

- Bills trade unch. To 2 ticks lower, 3-Month BBSW fixed ~+0.3bp today.

- The AOFM's auction of A$1.0bn worth of the May '28 Bond was easily digested,

with the offer to cover ratio ticking higher on a size adj. basis.