Front end of the curve is bid on the...>

AUSSIE BONDS: Front end of the curve is bid on the back of Westpac adjusting its

RBA call to 3 cuts in 2019 (from 2 previously). They now look for the RBA to cut

the cash rate in June, August and November.

- YM +4.5 ticks, with XM +6.0 ticks.

- The move in the front end following the release of note has allowed the curve

to unwind some of the flattening that was observed in early trade. YM/XM trades

at 44.0 ticks, with the cash equivalent at 42.0bp.

- Bills run 1-5 ticks higher through the reds. Selling of the IRZ9H0 spread had

already been highlighted ahead of Westpac's change in view, with further selling

of that spread noted in the wake of the call.

- RBA repo ops saw A$780mn of 19-day ops dealt at an average of 1.577%, with

A$1.205bn worth of 60-day ops dealt at an average of 1.506%.

- Focus now turns to the AOFM's weekly issuance schedule at the top of the hour,

with details of the new ACGB June 2031 line set to be announced.