Bond futures have traded higher from...>

AUSSIE BONDS: Bond futures have traded higher from the off, extending on their

Tsy-related strength on SYCOM. The latest leg higher came in the wake of a soft

Westpac consumer confidence print, which was likely influenced by the recently

released Q4 GDP data. Futures activity was dominated by the rolls.

- ANZ noted that they exp. the RBA to keep its MonPol settings unch. through

2019 & 2020.

- YM last +6.0 ticks, with XM +6.75 ticks. YM/XM trades at 41.75, with the cash

equivalent at 42.7bp. The AU/U.S. 10-Year yield spread deals at -64.9bp.

- Corporate issuance generated attention. Stockland Trust launched 5-Year A$

unsecured benchmark notes, while KBN launched a A$25mn tap of its 2028 line at

swaps +53bp. IFC priced a A$25mn tap of its 2029 kangaroo line at swaps +42bp,

while Mercedes Aus' 3-Year A$ IPT came in at swaps +90bp. Connect East Finance

A$ 7-Year IPT noted at swaps ~+160bp.

- Bills trade 2-7 ticks higher through the reds. RBA repo ops saw A$320mn of

15-day operations dealt at an average of 1.769%, while A$1.522bn worth of 29-day

ops were dealt at an average of 2.046%.