Futures stuck to a tightish range......>

AUSSIE BONDS: Futures stuck to a tightish range after drawing support from Terry

McCrann's latest article during SYCOM hours. McCrann wrote "after playing the

waiting game for almost three years, the Reserve Bank is going to cut interest

rates to a record low in 18 days." OIS price a 70% chance of a cut at next

month's RBA decision. The Chinese state media reports mentioned elsewhere

provided a bid in the 2nd half of the session.

- On the issuance front we learnt that the AOFM plans to tender a new 21 June

2031 bond line on Wednesday 29 May 2019, this provided some modest weight.

- YM unch., XM -1.0 tick. YM/XM trades at 48.0 ticks, with the cash equivalent

at 44.9bp.

- Bills trade 3 ticks higher to 1 tick lower through the reds, with the

front-end outperforming.

- Focus now moves to this weekend's federal election. The ruling coalition has

narrowed the gap in the polls over recent months, but the majority of polls that

we have seen have the opposition Labour Party winning by a small margin,

typically polling between 51-52% on a 2-party basis.