Stronger than exp. Australian retail...>

AUSSIE BONDS: Stronger than exp. Australian retail sales & trade data had

already provided weight, before the latest round of optimistic Sino-U.S. trade

headlines (from the FT) added more pressure to the space. The caveated nature of

the report allowed bond futures to edge away from worst levels, before a much

stronger than expected Caixin services PMI release out of China resulted in a

revisit of session lows. Broader markets then stabilised, with bond futures

edging away from worst levels as a result.

- YM last -3.5 ticks, with XM 2.5 ticks lower. YM/XM trades at 47.5, after being

capped at 50.0 in early trade, with the cash equivalent at 42.8bp. The AU/U.S.

10-Year yield spread trades at -66.7bp.

- The initial AOFM issuance plans for 2019/20 had little impact on the mkt. The

AOFM pointed to conventional issuance of A$58bn, up from A$54bn in 2018/19. The

AOFM also plans to issue A$2.5bn in I/L paper. The AOFM revealed that it plans

to establish new bond lines maturing in Jun '31 & May '32.

- Bills trade 2 to 4 ticks lower through the reds. RBA repo ops saw A$1.335bn

worth of 50-Day ops dealt at an average of 1.875%.