Overnight flattening being reversed....>

AUSSIE BONDS: Overnight flattening being reversed in Sydney trade, as XM reverts

to unchanged levels after being supported by U.S. Tsy/crude/equity market

dynamics in SYCOM trade, with participants perhaps a little wary of A$1.5bn

worth of ACGB 2.50% 21 May 2030 supply. Also, a reminder that RBA Governor Lowe

noted the following on Tuesday: Wwith conditions more settled at the moment, our

plan for the immediate future is to schedule any bond auctions we conduct for

three days each week - Mondays, Wednesdays and Thursdays. That does not mean

that we will necessarily purchase bonds on each of these days. Whether or not we

do so will depend upon the yield on 3-year government bonds and on market

functioning."

- YM also prints unchanged on the day.

- Bills -1 to +1 through the reds, with the overnight interbank cash rate fixing

at 0.14%.

- Flash retail sales data and the aforementioned ACGB supply headline locally

today. Elsewhere, skilled vacancies data and the Westpac leading index are due.