Futures observed tight ranges on.......>

AUSSIE BONDS: Futures observed tight ranges on SYCOM, contracts edging lower in

early Sydney trade, YM -0.5, XM -1.0, with swaps widening a touch vs. ACGBs in

early cash trade.

- Early focus in the space has fallen on upticks in the rates of expansion for

the flash CBA PMIs, although the data is still working off of a low base, which

needs to be considered. It is also worth remembering that the recent uptick in

local COVID-19 cases is set to impact confidence in at least the short term.

Also, the release noted that "the fall in employment looks a little surprising

given some other measures of labour demand have firmed more recently. But

encouragingly the acceleration of growth in new orders suggests labour demand

should improve."

- Elsewhere, NSW T-Corp launched a tap of its Oct '23 FRN, while AusGrid Finance

has mandated for a potential round of AUD issuance. NAB issued A$100mn worth of

2040 subordinated notes.

- The AOFM's weekly issuance slate headlines locally today, which will be

headlined by the syndication of the new ACGB '51.