Westpac note that their "preferred.....>

AUSSIE BONDS: Westpac note that their "preferred measure of activity (net $A

flow delta, 20-day rolling sum) remained in negative territory for the majority

of May, 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 unwinding in April developed into the largest source

of demand for A$ risk, with strong interest in ACGB and receive-side

derivatives. Domestic real money accounts remained close to flat while

sovereigns showed a small uptick in demand. Demand for corporate bonds has

returned and has been the driving force behind positive delta since the market

settled. Selling has been the more dominant flow we've seen in government bonds

since the crisis began but this was not as aggressive during May, possibly

aligning with the Treasury's JobKeeper announcement. Selling remained

concentrated in the >10yr maturities, while also developing in the 5-10yr part

of the curve."