Light flattening impetus in play in....>

AUSSIE BONDS: Light flattening impetus in play in Sydney trade, with an eye on

the pullback in mainland China equities (which has faded), ACGB syndication out

of the way (for now) and the local COVID-19 situation in Australia. Elsewhere,

the latest round of Westpac monthly consumer confidence data reflected worry

surrounding the COVID-19 situation. YM +0.5, XM +2.5 last.

- On the COVID-19 front we have seen ACT health officials warn against travel to

Sydney, unless it is absolutely necessary. Elsewhere, across the ditch, NZ Prime

Minister Ardern has played down the chances of the imminent formation of a

trans-Tasman travel bubble given the current COVID-19 situation in Australia.

- Data from the AOFM revealed that yesterday's ACGB Nov '25 syndication showed

relatively stable levels of foreign demand when compared to May's ACGB Dec '30

syndication, with the most notable change in the underlying demand patterns

being an uptick from Asia-Ex Japan investors as North American investors shied

away.

- Bills -1 to +1 through the reds.

- June's labour market report headlines the local docket on Thursday.