Bond futures legged higher following...>

AUSSIE BONDS: Bond futures legged higher following the late fall in U.S. index

futures after the cash close, with the latest yuan related risk-off flows adding

a further layer of support to the space. That being said, YMZ8 bulls have failed

to clear 97.95 thus far. The contract has lacked follow through after a brief

look above yesterday, with recent highs/Fibonacci resistance in play in the

region.

- The domestic 3-/10-Year cash yield differential has flattened to 59.0bp on the

latest move lower in yields, with the AU/U.S. 10-Year yield differential sitting

at ~51.5bp.

- Next week's AOFM issuance schedule looks a little light with A$1.0bn of the

3.25% 21 April 2029 Bond on tap next Friday.

- The Bill strip trades virtually unchanged last, 3-Month BBSW fixed ~0.1bp

higher, while repo rates hit a new month-to-date high.

- Highlights next week include the releases of Australian CPI on Wednesday,

trade balance on Thursday & retail sales on Friday. Elsewhere, RBA Assistant

Gov. Bullock speaks in Sydney on Tuesday.