MONTH-END EXTENSIONS: Westpac note.....>

AUSSIE BONDS: MONTH-END EXTENSIONS: Westpac note that "while semi issuance has

slowed over the month, ACGB issuance continues at a heightened pace as the gov't

works to fund the substantial budget deficits. The task ahead of the gov't has

led the AOFM to complete their two largest syndications in as many months,

including $19bn of a new Dec-30 which priced in mid-May. The modified duration

on the Composite 1+ yr index is expected to increase by 0.22 to the longest ever

duration of 6.23. The majority of this change owes to the 0.35 extension of the

Treasury 1+ yr index (nominal ACGB), which has been tempered by smaller

increases in the Semi, Supra/Sov & Credit indices. Nonetheless, the AOFM's

largest ever syndication of the $19bn Dec-30 converges with the $25bn ACGB

May-21 falling out of the Composite 1+ yr index, meaning this month's rebalance

will be the second longest extension in both the Treasury 1+ yr & Composite 1+

yr indices' 26 year history. We expect these extensions will provide good

support for domestic duration assets and aid curve flattening into month end."