Little to disturb the bull.............>

AUSSIE BONDS: Little to disturb the bull flattening impetus previously outlined,

with XM sitting just off highs. YM unch., XM +4.0.

- Locally, we have seen another round of dismal vacancies data (recording the

largest Q/Q drop on record in May), although as we pointed out yesterday, SEEK

private data shows a slightly warmer picture in recent weeks, albeit with their

measure of job ads well shy of pre-COVID-19 levels. Elsewhere, focus continues

to fall on the COVID-19 situation in the state of Victoria.

- On the corporate issuance front Singtel Optus has printed a chunky A$850mn

across 5- & 10-Year lines, which comes after NHFIC priced up A$562M worth of

2032 social bonds on Wednesday. Genworth also priced up A$190mn worth of 5-Year

FRN.

- Bills unch. to -1 through the reds with upside maybe limited on the day after

the surplus ES balances lodged at the RBA falling to the A$38.0bn marker, well

elevated in historical terms, but somewhat shy of the ~A$89.0bn seen back in

early April. Still, liquidity in the system is flush, with little in the way of

tangible upward pressure evident in short rates.