VIEW: Westpac note that "with the......>

AUSSIE BONDS: VIEW: Westpac note that "with the majority of maturities out of

the way, the amount of cash made available through repo looks unlikely to fall

much further - if the RBA were to maintain the average daily pace of June then

outstanding repo balances would be around $90bn by month end. The market is also

demanding more cash than the RBA intends to deal which suggests to us that there

is no real reason to expect a major shift in cash market dynamics in the near

term. Another factor is the availability of funds in the TFF - total drawdowns

of the TFF have risen over the June so far but still pale in comparison to what

banks could borrow before turning to alternate funding markets. So that all

leads to our view that ADIs will remain flush with liquidity, and money market

demand has been significant enough to hold BBSW below effective cash, so a

reduction in the Surplus ES balance is not necessarily a sign that these rates

need to surge."