VIEW: Westpac note that "in light of......>

AUSTRALIA: VIEW: Westpac note that "in light of last week's revised JobKeeper

estimate, Westpac's economics team has re-assessed our expectation for the

Federal fiscal position. We now expect a deficit of A$80bn for the 2019-20

financial year and A$170bn for 2020-21. As such, we now expect gross issuance of

nominal & indexed-linked ACGBs this year to total A$131.8bn. To date, the AOFM

has issued A$106.5bn and is expected to issue A$25.3bn between now and June

2030. Under our deficit expectations that would represent "pre-funding" of

A$8.5bn to go against next year's larger funding requirement which we see as

needing A$215.6bn of gross ACGB issuance. They remain large numbers, breaking

previous peaks in issuance, however, they are also significantly lower than was

the market's central expectation only a few days ago. While there has been some

adjustment, we do not think that is fully reflected in current outright yields

and curve shape."