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

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.