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YM +1.5, XM +3.0, with YM/XM flatter...>

AUSSIE BONDS
AUSSIE BONDS: YM +1.5, XM +3.0, with YM/XM flatter at 29.5, albeit off session
flats. AU Bonds experienced some chop over RBA Gov. Lowe's testimony to a
parliamentary committee. Taking a hit on the back of Lowe's suggestion that the
econ may have reached a "gentle turning point," although talk surrounding lower
rates & extraordinary measures ultimately provided support (even as such a
scenario was deemed a very low prob. outcome). The latest RBA SoMP highlighted
downside risks, both externally & domestically, changes to econ assessments were
well flagged. This came after the space drew support from the well documented
BBG sources piece pertaining to matters surrounding Huawei export licences & the
Italian political woes. A relatively heavy AOFM weekly issuance schedule, with
auctions of A$400 million of ACGB 3.25% 21 June 2039 & A$800 million of ACGB
2.50% 21 May 2030 headlining, did little to disturb the space post-Lowe.
- Corporate issuance saw AusCap mandate for A$ 2025 benchmark paper after some
2039 A$ issuance from Credit Agricole became evident on Thursday.
- Highlights next week; domestic labour market report, quarterly wage price
index, NAB biz survey. Elsewhere, we will hear from RBA's Debelle (x2) & Kent.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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