Futures drifted lower on SYCOM, in.....>

AUSSIE BONDS: Futures drifted lower on SYCOM, in sympathy with Tsys, after the

market was closed during SFE hours on Monday, observing the Queen's birthday

holiday.

- Major futures trade just off SYCOM lows, YM -2.5 ticks, XM -4.0 ticks. YM/XM

deals at 41.5 ticks, with the cash equivalent at 40.4bp.

- Bills trade 1-3 ticks lower through the reds.

- Focus today moves to the latest NAB business survey. In terms of the headline

reading participants will be on the lookout for the impact of the shock victory

for the coalition in the Federal Elections, while markets will quickly look to

the labour market sub-component ahead of Thursday's key labour market report.

- There will also be some I/L ACGB supply, in the form of A$150mn of the 1.25%

2022 line.

- Also worth flagging that Moody's has downgraded Northern Territory to Aa3;

outlook changed to stable.