The AU fixed income space had a........>

AUSSIE BONDS: The AU fixed income space had a limited reaction to the softer

than exp. AU Q2 CapEx print, with the key plant & machinery component falling in

Q/Q terms. The much watched 3rd est. of '18-'19 CapEx ticked up to A$101.9bn &

was pretty much in line with exp. Participants are seemingly more focused on the

potential for mortgage rate adjustments from the remaining tier 1 AU banks,

following the move from Westpac yesterday. Westpac's move led to outperformance

in AU Bonds, with the AU/U.S. 10-Year yield spread last at ~-31.5bp, while the

domestic 3-/10-Year yield differential continues to steepen, last ~56.0bp.

Corporate issuance continues to garner attention, Credit Union AU priced $200mn

3-Year paper, while Bank of Montreal launched A$ 3- & 5-Year A$ paper, aiming to

take advantage of AUD/CAD basis. Singtel priced A$500mn worth of 5-Year paper.

- The Bill strip sits unchanged to 3 ticks lower, easing a touch after the late

spate of buying that was observed in Wednesday's SFE session, although the weak

CapEx data leant a degree of support. The RBA MonPol decision provides the

highlight of the AU docket over the next week, with GDP inputs due ahead of the

final national a/c print.