Westpac expect "to be either long or...>

AUSSIE BONDS: Westpac expect "to be either long or neutral YM & XM in both a

tactical and strategic sense over coming weeks. It is too early to expect yields

to rise on an improving economic outlook. We are neutral at current levels but

tactically we would be better buyers on dips, especially those led by US price

action. The curve is very long end directional given how much RBA easing is in

the forward profile, fade any US-led steepening back toward the 50bp level. We

think they will eventually trend higher from current levels. We are

contemplating how much more AU outperformance vs. U.S. Tsys is likely on a near

term and medium term basis. The response of the curve to a FOMC-induced UST

shift will further inform our view. BEIs are low but are awaiting confirmation

that RBA policy is effective off current levels."