The bull flattening theme has..........>

AUSSIE BONDS: The bull flattening theme has extended in early Sydney trading

after the previously discussed sources of worry supported XM in the latter part

of SYCOM trade, with the contract now showing through Wednesday's highs. YM

+0.5, XM +4.0.

- Singtel Optus has just printed a chunky A$850mn across 5- & 10-Year lines,

which comes after NHFIC priced up A$562M worth of 2032 social bonds on

Wednesday.

- Bills sit unchanged to +2, with surplus ES balances lodged at the RBA now

sitting around the A$38.0bn marker, still well elevated in historical terms, but

somewhat shy of the A$89.0bn seen back in early April. Still, liquidity in the

system is flush, with little in the way of tangible upward pressure evident in

short rates.

- Job vacancies data and Note supply headline locally today.