The lack of notable headway made at....>

AUSSIE BONDS: The lack of notable headway made at the latest round of U.S.-China

trade talks (as expressed in MOFCOM's communique) put a fresh bid into global

fixed income in early Asia-Pacific trade, perhaps a degree of buy the rumour

sell the fact, pushing AU bond futures higher. The initial impetus from the move

has subsequently faded. YM last +0.5 tick, with XM adding 1.0 tick. YM/XM deals

at 51.5, with the cash 3-/10-Year yield differential last 48.4bp. AU/U.S.

10-Year yield spread last -38.8.

- White and red bills trade 2 ticks lower to 1 ticks higher at writing. RBA

Reverse repo ops saw A$665mn worth of 21-Day ops dealt at 2.010% & A$1.885bn

worth of 83-Day ops dealt at 2.036%, rates consolidating above 2.0%. 3-Month

BBSW fixed 0.57bp higher today.

- IFC priced a A$400mn tap of its March 2023 social bond at swaps +40bp.

- Focus tomorrow will turn to AU retail sales & the weekly AOFM auction

schedule.