A positive set of RBA minutes..........>

AUSSIE BONDS: A positive set of RBA minutes briefly saw Aussie bonds hit session

lows, movement more pronounced in the short end. However the drop was shortlived

and futures now trade at pre-announced levels. 3-Year future last down 2 ticks

at 97.79, 10-Year yield last down 1 tick at 96.16.

- Yields higher across the curve with a slight post minutes hangover keeping

yields in the short end elevated, 3-Year yields last up 1bp, 10-Year yields last

up 0.5bp.

- The minutes highlighted that domestic data was strong and indicated a gradual

pick up in growth, as well as pointing out the strength of the labour market.

- At the same time, the RBA once again highlighted the impact of the

appreciation of the Australian dollar on domestic growth and inflation, and

reminded that a further appreciation "would be expected to result in a slower

pick-up in growth and inflation."

- Note though that the minutes took place before Q2 GDP figures were released.

GDP fell below estimates at 0.8% on the quarter.