A quiet start for Aussie Bonds, with...>

AUSSIE BONDS: A quiet start for Aussie Bonds, with futures holding around the

SYCOM closing levels, after the overnight session saw futures largely tracking

Tsys.

- Domestic 3-/10-Year cash yield spread unch. ~67.5bp last, with the AU/U.S.

10-Year yield spread at -47.0bp.

- Bills trade 1 tick higher to 1 tick lower, 3-Month BBSW fixed ~1.1bp higher

today.

- Focus today falls on the RBA MonPol decision. The RBA is set to leave its cash

rate unch. at 1.50%. Focus will quickly turn to the statement, with the Bank set

to make inference regarding its upcoming econ projections, due Friday.

Housing/consumer activity will be eyed. Q3 CPI won't alter the RBA's view, as it

had previously flagged the impact of one off drags on inflation in Q3, with the

core measures meeting the Bank's exp. Comments regarding the labour mkt will

provide more interest after the unemployment rate fell to 5.0%, although the

move was driven by a fall in the participation rate.