Weaker than expected Aussie labour.....>

AUSSIE BONDS: Weaker than expected Aussie labour market data provided the Aussie

bond space with another reason to go bid, and was likely the driver behind a

more resolute reaction in Aussie bonds as some of the early risk aversion faded,

with flattening evident for futures throughout Sydney trade, YM last unch., with

XM +3.5.

- Worth remembering that some of the "soft" metrics covering the local labour

market (weekly ABS payrolls and SEEK employment reports) point to the worst

already being behind us.

- Also worth noting that China fired a bit of a warning shot re: iron ore

prices, as the NDRC noted that the country will be looking for more reasonable

pricing re: its imports, perhaps a not so veiled shot at Australia.

- On the issuance front Singtel Optus has mandated for a potential 5- and

10-Year A$ round of issuance, while KfW launched a minimum A$100mn tap of its

'22 A$ line and Kommunalbanken priced A$65mn worth of a new '30 A$ line.

- Bills -1 to +1 through the reds, with the contracts mostly unchanged at

typing.