Much stronger than exp. domestic.......>

AUSSIE BONDS: Much stronger than exp. domestic building approvals data applied

modest pressure to Aussie Bonds, with the broader risk-on feel also adding

further, modest weight, although price action was relatively limited (Japan

observed a public holiday). YM & XM finished -1.0.

- Looking into the details of the latest NAB biz survey; the employment outlook

indicator moderated to 0.8 from 4.3 (not the best sign for the RBA). Labour cost

index was steady at 0.9 for a 4th straight month. Biz conditions unch. at 3,

confidence -1 vs. -2 prev.

- The latest 10-Year I/L bond auction from the AOFM was strong,

- Elsewhere on the A$ issuance front Sumitomo Mitsui mandated for a new 2.5 Year

floating A$ note, while First Abu Dhabi launched 5-Year fixed and/or floating A$

paper. On the semi front, WATC launched a new benchmark 5-Year floater.

- Bills closed 1-3 ticks lower through reds.

- RBA's Heath speaks on Wednesday, with a A$1.3bn tap of ACGB 2.50% 21 May 2030

& latest round of AOFM buyback operations also due.