Little to write home about for the.....>

AUSSIE BONDS: Little to write home about for the Aussie bond space, in a low

volume session. XM back from early Sydney highs (which were likely printed as a

result of spill over from U.S. Tsy trade in NY) on the cautious risk-on flows we

have highlighted, to last trade 1.0 lower on the day, with YM sitting at

unchanged levels.

- Space looked at the stronger than expected domestic Q1 CPI data as being very

much a thing of the past, influenced by the bushfires, with the ABS also noting

that "there were some price effects of COVID-19 apparent in the March quarter

due to higher purchasing of certain products towards the end of the quarter, as

restrictions came into effect. More evident effects of COVID-19 are expected in

the June quarter CPI."

- Month-end extension estimates are seen as either marginally +ve or marginally

-ve, dependent on which bank you ask.

- Bills print unchanged to down 2 through the reds.

- Domestic private sector credit, terms of trade and bill supply are all due

tomorrow, as is the next round of RBA bond purchases.