The space generally followed the.......>

AUSSIE BONDS: The space generally followed the impetus of Tsys/broader risk

appetite on tuesday, moving back from early Sydney and SYCOM highs as U.S.

equity index futures moved higher. That left both YM & XM 1.0 tick lower on the

day come settlement time

- In terms of domestic market matters there was little to go off today outside

of QTC launching a New benchmark A$ July 2034 line.

- Australian PM Morrison noted that the impact of the Coronavirus would be

deeper than that of the bushfires, and when questioned re: the heavily touted

budget surplus he noted that "we will deal with that at the time of the budget."

- Elsewhere, Goldman Sachs became the latest to cut their GDP forecast for

Australia, and now look for -0.3% Q/Q fall in Q1.

- Swap spreads generally widened across the curve.

- Underperformance vs. Tsys held, with the AU/U.S. 10-Year spread > -50.0bp.

- Bills finished unchanged to 1 tick lower through the reds.

- Completed construction work gets the GDP inputs underway tomorrow, while we

will also see A$800mn worth of ACGB 1.50% 21 June 2031 supply.