Some interesting comments from RBA.....>

AUSSIE BONDS: Some interesting comments from RBA Gov. Lowe in his Q&A session in

early London hours Tues. Lowe noted that the RBA is "starting to get concerned

about credit supply." While he also suggested that unemployment may go to 4.5%

without generating wage pressure. It's currently 5.0% & the RBA is projecting

4.75% during '20. This came after the initial speech, which saw Lowe state that

"the Board does not see a strong case for a near-term change in interest rates.

There is a reasonable probability that the current setting of monetary policy

will be maintained for a while yet."

- Futures registered overnight session highs around the time that Lowe spoke,

although the contracts stuck to a tight enough range. The 3-/10-Year cash yield

differential has held above 60bp, with AU paper's recent underperformance vs.

Tsys also holding, AU/U.S. 10-Year yield spread at ~-36.5bp.

- Bills trade unchanged to 1 tick lower through the whites and reds. 3-Month

BBSW set unch. today.

- Non-basket bond issuance due at the top of the hour, with the AOFM set to sell

A$1.0bn of the 2.50% May 21 2030 bond.