VIEW: RBC flagged up 5 trades of.......>

AUSSIE BONDS: VIEW: RBC flagged up 5 trades of interest yesterday:

- 1) Outright (monitoring): Buy ACGB Apr-25 outright at 45bp. With OMO repo

rates consistently at 0.18% and liquidity unlikely to be withdrawn for some

time, we think this will gradually roll down to the RBA's 0.25% YCC while

carrying positively.

- 2) Curve (entered): Enter 6m fwd 2-5s swap flattener (q/q) at 26bp, stop 33bp.

Roll-down 2.4bp/3mths. As with 5y ACGB, we expect 5y swap to roll down towards

shorter tenor rates. The structure gives us some protection against historically

tight basis spreads with the curve (rather than outright) helping buffer against

any widening in bills/OIS, and the q/q 5y leg avoid any bounce in 3m6m basis.

- 3) Cross-market (monitoring): Buy ACGB Apr-25 vs UST 3/8 Apr-25 at 10bp. We

prefer this part of the curve to the 10y benchmark spread.

- 4) Front-end curve/bill-OIS (monitoring): Play a 0-15bp range in

March-21/March- 22 bill futures spread.

- 5) Semis (entered): WATC Jul-24/Jul-28s flattener vs ACGB Apr-24/May-28 at

18.5bp. Stop 22bp, take-profit 13.5bp. Carry & roll-down 2.5bp/3mths