YM +0.5 & XM +1.5 vs. settlement at....>

AUSSIE BONDS: YM +0.5 & XM +1.5 vs. settlement at typing, after a limited round

of early Sydney dealing, although the latter is now having a look through its

overnight/Wednesday high, as the curve edges a little flatter and e-minis nudge

lower.

- Australia's flash PMI readings for May were grim, as outlined earlier, but the

text of the release suggests the worst may nearly be behind the Australian

economy (although that may of course depend on Sino-U.S. and Sino-Australian

relations).

- Bills unchanged to -1 through the reds.

- A panel discussion including RBA Governor Lowe & Note supply from the AOFM

headline on Thursday, with broader cash flow matters outlined in an earlier

bullet.