YM has extended on the SYCOM highs.....>

AUSSIE BONDS: YM has extended on the SYCOM highs in early dealing, with XM

testing overnight highs in early SFE trade. YM last trades 1.0 tick higher, with

XM unchanged. YM/XM trades at 50.0, with the cash equivalent at 44.bp.

- The initial AOFM issuance plans for 2019/20 have had little impact on the

market. The AOFM pointed to issuance of A$58bn, up from A$54bn in 2018/19. The

AOFM also revealed that it plans to establish new bond lines maturing in June

'31 & May '32 between now & 30 June '20. This comes after the latest Federal

Budget delivered a projected cash surplus (with projections for a cash surplus

extending over the forecast horizon), which was wider than that envisaged in the

MYEFO, as well as various measures of fiscal stimulus ahead of the upcoming

federal election (which could have its date formally announced on Friday).

- Bills trade unchanged to 2 ticks higher through the reds. RBA repo ops saw

A$1.335bn worth of 50-Day ops dealt at an average of 1.875%.

- Lacklustre domestic services PMI data was noted in early hours, but the data

is lower tier, with a focus on retail sales, and to a lesser degree, the trade

balance, due later today.