Tsys dragged the space higher..........>

AUSSIE BONDS: Tsys dragged the space higher overnight, with a lack of tier 1

headline flow evident during the bulk of the SFE session.

- AU rates shrugged off the marginal miss on the headline monthly AU trade

surplus, which continues to operate just shy of the record highs realised

earlier this year.

- Worth highlighting that Moody's upgraded Western Australia's credit rating to

Aa1; outlook changed to stable.

- YM last +1.5 tick, with XM +1.0 tick, with some light twist steepening in play

as YM/XM trades at 42.0 ticks, while the cash equivalent trades at 40.4bp, just

back from earlier steeps.

- Bills are running unchanged to 4 ticks higher through the reds. Today's RBA

repo operations saw A$600mn worth of 18-day operations dealt at an average of

1.402%, with A$750mn worth of 53-day operations dealt at an average of 1.361%.

- The weekly AOFM issuance schedule and housing finance data headline the

domestic docket tomorrow, ahead of the long holiday weekend.