3-Year futures have edged higher in....>

AUSSIE BONDS: 3-Year futures have edged higher in the wake of disappointing

domestic retail sales & current account data, last trading at 97.910 (-1.5

ticks), while 10-Year futures last trade at 97.225 (-4.5 ticks).

- The domestic 3-/10-Year yield differential last sits at 70.9bp (+0.5bp), while

the AUUS 10-Year spread sits around -10.0bp.

- Participants await the RBA decision, although unanimous expectations look for

the central bank to stand pat. Little has changed on the domestic inflation

front, with wage growth in keeping with the RBA's "gradual" exp., while many of

the themes on domestic & global growth from the February statement are likely to

be repeated; however, the Bank may introduce language surrounding the recent

trade rhetoric out of the US, which could be deemed dovish.

- Markets currently price a ~60% chance of a hike by the end '18.

- The short end is a little softer as we approach today's decision with the

white and red bill contracts trading 1-3 ticks lower.

- On the corporate issuance front NAB has announced that it plans to issue new

March 2023 & March 2028 benchmark covered bond.