Futures trade back from best levels....>

AUSSIE BONDS: Futures trade back from best levels after a much softer than

expected Q4 completed construction work print (-3.1% vs. exp. +0.5%) put a bid

into the space, with many economists pointing to the potential for downside

surprise in next week's GDP print/marking down their estimates as a result.

- YM last +2.0 ticks, with XM +2.0 ticks. YM/XM trades at 43.0, with the cash

equivalent at 43.7bp. The AU/U.S 10-Year yield spread trades at -56.5bp.

- Stockland Trust Management mandated banks for an A$ bond roadshow, while ADB

launched a A$100mn tap of its 2029 Kangaroo line and QTC priced A1.25bn worth of

2029 green bonds at futures +59bp.

- The latest auction of a XM basket bond was virtually ignored.

- Bills trade unchanged to 2 ticks higher through the reds. RBA repo ops saw

A$477mn worth of 15-Day ops dealt at an average of 1.723%, while A$1.508bn worth

of 58-Day ops were dealt at an average of 2.026%.

- Focus now moves to Q4 CapEx data, due tomorrow, particularly in light of

today's soft completed construction work print.