Flows in Tsys were the driving.........>

AUSSIE BONDS: Flows in Tsys were the driving factor for the space, with the YM &

XM contracts operating just shy of session highs at writing, reversing their

declines from yesterday (and more in the case of YM).

- The latest round of housing finance data saw home loans top exp., although the

print could hardly be deemed a strong positive development, while the investment

lending and owner occupier loan value readings missed exp. Revisions to April's

data were minimal.

- The short end leads the rally post-Powell/Fed minutes, YM +3.0 ticks with XM

+2.0 ticks. YM/XM deals at 43.0 ticks, with the cash equivalent at 38.6bp.

- Bills trade 1-3 ticks higher through the reds. RBA repo operations saw

A$1.475bn worth of 21-day operations dealt at an average yield of 1.286%.

- Focus moves to comments from RBA Deputy Governor Guy Debelle in NY hours. The

subject of the address will be the "FX Global Code."