A tight start to SFE trade, with.......>

AUSSIE BONDS: A tight start to SFE trade, with eyes on local risk events.

- The minutes from the RBA's most recent MonPol decision are due to be released.

As a reminder, the Bank left the cash rate unchanged earlier this month. The

minutes will likely aim to strike a balance between leaving the door open for

further cash rate cuts (allowing the recent rate cuts and fiscal stimulus to at

least partially work their way through into the economy) and what Governor Lowe

has previously described as the economy reaching "a gentle turning point". The

IB strip currently prices 23bp of further easing by year end.

- Elsewhere, Australian Q2 house price data (viewed as outdated owing to recent

dynamic shifts in the Australian housing market on the back of the RBA cuts and

regulatory moves) will hit.

- YM +1.5, XM +2.0. YM/XM deals at 30.0, with the cash equivalent at 26.9bp.

- Bills trade 1-2 ticks lower through the reds.