Print The Bonds & They Will Come

Light steepening held in the Aussie Bond space, YM -0.5, XM -2.5, even with the latter moving away from worst levels.

• Australia's flash trade balance release and ABS payrolls data provided no real impetus for the space, while the latest round of weekly ANZ consumer confidence data saw an uptick.
• The launch of ACGB Nov '31 garnered most of the interest, with the bookbuild already said to be in excess of A$44bn. Broader expectations look for A$15.0-20.0bn to price tomorrow.
• Corporate issuance has seen Korea Expressway taking IOIs for A$ 3-Year fixed and/or floating paper, Liberty Financial has mandated for potential A$ issuance and Suncorp has launched 15.25-Year NC5.25 subordinated notes.
• Worth flagging that Japan's Kirin Holdings and China Mengniu Dairy abandoned the sale of Kirin's wholly owned Australian dairy firm Lion-Dairy and Drinks, which China Mengniu Dairy was interested in. This comes after reports run last week suggested that the Australian government could stand in the way of the deal. The Sino-Aussie sabre rattling continues.
• Bills run unchanged to -1 through the reds on light volume.
• Completed construction work for Q2 and the pricing of the new ACGB Nov '31 line will headline on Wednesday.