The space has recovered to virtually...>

AUSSIE BONDS: The space has recovered to virtually unchanged levels after

muni/agency deals weighed. The most notable of such issuance was South

Australian Financing formally announcing that it intends to tap its 1.5% Sep 22

2022 & 3.0% Jul 20 2026 Bond lines for upto $500mn each. Elsewhere NSW TCorp

issued a mandate for A$50mn worth of paper.

- On the corporate front AT&T mandated banks for a potential A$ deal, GPT Re.

issued guidance for a potential issuance of A$100mn worth of 6-Year paper & TD

launched benchmark 3-Year Kangaroo paper (we have seen an increase in A$

issuance from CAD institutions in recent weeks, looking to take advantage of

AUD/CAD basis).

- The domestic 3-/10-Year yield differential & AU/U.S. 10-Year yield spread both

sit in familiar territory.

- The Bill strip last trades unch. to 2 ticks lower, with 3-Month BBSW fixing

~0.1bp lower today. Repo rates have ticked up as we approach quarter end, with

the BBSW fixing remaining subdued thus far.