Westpac flow analysis reveals that.....>

AUSSIE BONDS: Westpac flow analysis reveals that their "preferred measure of

activity (net $A flow delta, 20d rolling sum) remained in negative territory for

the month of April, though the selling flow was not as aggressive as that seen

in March. Breaking the flow down by participant, the strong selling from

offshore real money accounts that we saw in March moderated unwound in April,

leaving these participants as a small net long by month end with strong interest

in ACGB and receive-side derivatives. Domestic real money accounts also showed a

small uptick in demand by month end. Sovereigns were again absent but not

sellers. Derivative pay-side activity picked up (more from leveraged accounts

than corporates) while demand for corporate bonds returned. Buying was popular

in the <=2yr maturities while selling remained concentrated in the >10yr

maturities, consistent with the curve steepening that has played out over the

past two months."