Ticked higher into a very ordinary.....>

AUSSIE BONDS: Ticked higher into a very ordinary auction of the 2.75% 21 Nov

2029 ACGB, but struggled for any traction at/above SYCOM highs. YM closed +1.5,

XM +4.5. YM/XM 2.0 flatter at 44.0. Bills were unch. to +2 ticks thru reds.

- The latest opinion polls confirmed that PM Morrison's handling of the bushfire

crisis has not been well received by the Australian public, with his disapproval

ratings surging & the Labour Party moving into the lead vs. the coalition.

- Elsewhere, S&P noted that the bushfires across Australia pose no immediate

threats to state/sovereign ratings, and that their current ratings have capacity

for both the state and sovereign gov'ts to absorb the fiscal costs of the fires.

While Moody's suggested that "Australia's general & state gov'ts can absorb the

near-term credit impact from the ongoing bushfires, supported by their ample

fiscal buffers. However, over time, increasingly frequent and severe natural

disasters related to climate change are likely to result in rising and recurring

costs that will test the gov'ts capacity to mitigate these costs."

- NAB launched a round of benchmark Jan 2025 A$ issuance, guidance BBSW +78bp.

- The local docket is empty on Tuesday.