Futures gapped higher at the Sydney....>

AUSSIE BONDS: Futures gapped higher at the Sydney re-open, breaking above their

SYCOM highs on the renewed round of risk aversion that was seen late in U.S.

trade, with fresh record lows for both 3- & 10-Year yields on the back of the

move. That leaves YM +3.0 and XM +1.5 as we type a touch shy of the opening

highs after the contracts failed to hold above their aforementioned SYCOM peaks.

- PM Morrison's push back against a fiscal answer to the coronavirus situation

yesterday will not please the RBA, who have long argued for a better

fiscal/monetary mix. We know the government wants a budget surplus, but recent

commentary on the matter from the PM held some implicit warnings that this may

not happen.

- Bills sit 1-2 ticks higher through the reds.

- The AOFM's weekly issuance schedule and private sector credit data headline

the local docket today.