Contained trade for futures during.....>

AUSSIE BONDS: Contained trade for futures during Sydney hours on the back of the

aforementioned risk mix.

- YM +0.5, XM -0.5, leaving YM/XM at 31.0 and the cash equivalent at 27.5bp.

- There was little reaction to the latest round of ACGB 1.50% 21 June 2031

supply, outside of very modest pressure in front of the auction, which was

larger than the norm at A$1.2bn (but the only round of ACGB issuance on offer

this week). The auction saw the size adj. cover ratio soften vs. the prev.

offering of the line, while the yield tail widened a touch. The sale still

stopped through pre-auction prices, by a margin that was roughly in line with

the recent tender avgs. Trans-Tasman issuance from New Zealand, which also took

the form of 2031 paper, may have also provided some light pressure to the space.

- Bills sit 1 tick lower to 2 ticks higher through the reds, with the front-end

outperforming.

- Domestic labour market data headlines the local docket tomorrow.