Steepening impetus from the Tsy........>

AUSSIE BONDS: Steepening impetus from the Tsy space during the final SYCOM

session of last week spilled over into Sydney trade, dragging YM/XM above 70.0,

YM unch. and XM -7.5 at typing, with the latter through overnight lows. Move

comes despite the previously flagged Australian-China trade tension, with

perhaps greater focus on the continued rollback of domestic COVID-19

restrictions, as NSW, Victoria and Western Australia outlined a slight loosening

of measures over the coming days.

- Another session of inactivity re: the RBA's ACGB purchases removed another

supportive factor for the space.

- YM/XM's move above 70 may have also triggered some stop outs from those

looking to fade the recent steepening, aided by focus on the pricing of the new

ACGB Dec '30 over the coming days (with most eying Wednesday, given recent AOFM

tendencies).

- Local issuance saw RACQ bank launch A$30mn worth of 1-Year paper, while NTTC

launched a minimum A$100mn tap of its 2030 line.

- NAB business confidence headlines locally tomorrow.