The broader risk off tone outlined.....>

AUSSIE BONDS: The broader risk off tone outlined elsewhere supported the space

during SYCOM trade, as the curve saw some bull flattening. Source flagged

further paying interest in the belly of the curve overnight, in addition to

ongoing interest in RBA flatteners. YM sits +3.0, with XM +4.5, hovering around

best levels seen since yesterday's close.

- This morning's flash CBA PMIs series lows for both the composite & services

prints, as both dived below 50.0. The notes that accompanied the release stated

that the PMIs "imply a contraction in private demand. Whilst this is clearly a

disappointing result, it is not altogether surprising given the two exogenous

shocks that have hit the Australian economy - the bushfires and the coronavirus.

Our main concern is that these events have hit the global and local economies at

a time when domestic demand was already soft. The level of both the services and

manufacturing PMIs highlights the need for more policy stimulus. With monetary

policy doing most of the heavy lifting an easing in fiscal policy continues to

look the most appropriate response to support aggregate demand."

- Participants now look to the weekly AOFM issuance schedule.