The broader risk-off flows provided....>

AUSSIE BONDS: The broader risk-off flows provided greater market impetus than a

deluge of A$ deal launches, pricing & mandates, as bond futures finished higher

on the day. YM +1.5, with XM +3.5, leaving YM/XM 1.5 flatter at 31.5. The

minutes from the RBA's most recent MonPol meeting reiterated the debate re:

trade offs of further monetary easing that was apparent in the recent deluge of

communique from Governor Lowe. The most pertinent point saw the Board deem the

risks posed by Coronavirus to be "material" in the near-term.

- In terms of issuance, the space managed to shrug off the duration headwinds.

The AOFM announced "an issue by syndication of the 2.75% 21 May 2041 Treasury

Bond. The issue will be of a modest size. Initial price guidance for the issue

is a spread of 49 to 51 basis points over the implied bid yield for the primary

ten-year Treasury Bond futures contract. The issue is expected to be priced on

Wednesday." Elsewhere, semi issuance headlined; TCV priced A2.25bn worth of new

1.5% Nov 2030s at EFP of 50bp, QTC mandated for a new November '24 FRN & NTTC

mandated for Apr '31 supply. There was plenty of corporate issuance as well.

- Bills finished 1-3 ticks lower through the reds.