In a note released on Friday RBC.......>

AUSSIE BONDS: In a note released on Friday RBC suggested that the Australian

front end is looking attractive but "funding uncertainty makes us reluctant to

enter outright long/received positions. We prefer selective cross-market longs

including AU/UK 1-Year 1-Year IRS and AU/US 5-Year 5-Year."

- RBC are also sticking with their Apr-20s vs Nov-27s steepener, though they

"have ratcheted up the stop after a large move in our favour prompted by the US

selloff." They also note that having entered the position "near recent lows, we

will thus likely look for opportunities to take profit and exit this position in

the coming weeks. While we continue to view it as a strategic trade for much of

2018, we also think it wise to be more nimble, especially given the uncertainty

around funding, particularly as we head toward June month-end."