The main contracts sit off of the......>

AUSSIE BONDS: The main contracts sit off of the opening lows, YM -1.5 ticks,

with XM -1.0 tick. This leaves YM/XM at 40.5 ticks, with the cash equivalent at

35.9bp. The overnight session was limited.

- Bills dealing 1-2 ticks lower through the reds.

- There has been some focus on an AFR piece citing prominent local economists

Andrew Charlton, & Stephen Koukoulas who have warned that "tax and interest rate

cuts as well as the removal of credit restrictions are already enough to

stimulate the economy and any more fiscal stimulus could jeopardise a return to

surplus," as "the stimulus coming could have much bigger effects on the economy

than many think."

- Elsewhere, the APRA has confirmed that it will require the major banks to lift

total capital by 3 percentage points of RWA by 1 Jan '24 (the long term target

is a 4-5pp increase).

- Looking ahead, focus today will fall on the NAB Biz survey, which will capture

the RBA's June rate cut. Particular focus set to fall on the labour market

metrics within the survey, given the RBA's focus on labour market dynamics.