Rumours re: an ever growing domestic...>

AUSSIE BONDS: Rumours re: an ever growing domestic fiscal package did little to

knock the Aussie bond space, as it drew support from the broader core FI

bid/risk-off tone, even with a sloppy ACGB auction seen (lower cover ratio, even

when auction size adj., and 0.24 stop above pre-auction yield levels, hindered

by recent richening & vol). YM finished +9.0, with XM +12.0, curve flattened.

- Worth re-flagging that RBA Dep Gov Debelle revealed the clearest signal yet

that the RBA could adopt a policy of YCC, as opposed to "normal" QE, if it deems

extraordinary MonPol methods appropriate (effectively confirming recent press

reports). His downbeat assessment of the econ had several analysts rubber

stamping their call for a 25bp cut to the Bank's 0.25% ELB in April.

- Elsewhere, Sky noted that "Australia's battlers on Newstart or the pension

will each get a one-off $500 payment from the Coalition's multi-billion-dollar

coronavirus stimulus package." Pointing to a fiscal package of ~A$20 bn.

- Finally S&P noted that Australia holds on to its AAA rating in its latest

bulletin, although it warned that its ratings could come under pressure if econ

weakness was prolonged, although it could withstand a temporary econ shock.