The space has followed Tsys higher,....>

AUSSIE BONDS: The space has followed Tsys higher, recouping all of the early

SYCOM losses, on the back of the Cohen news.

- The AU/US 10-Year yield differential has stabilised around ~-29bp for the time

being, while the AU 3-/10-Year yield differential hovers around 50bp, with the

futures spread last at 0.49, consolidating the flattening observed in recent

sessions.

- The Bill strip is largely unchanged, with 3-Month BBSW fixing 0.25bp lower

today.

- Lower tier local risk events today include the Westpac leading index & skilled

vacancies prints (although the RBA does pay a lot of attention to the latter),

with participants set to focus on the Q2 completed construction work metric, as

well as a speech from RBA Asst. Gov. Guy Debelle, covering the subject of "low

inflation."

- It is also worth noting that the AOFM will auction AUD1.0bn 2.25% of the 21

Nov '22 Bonds.