A very tight session for AU bonds......>

AUSSIE BONDS: A very tight session for AU bonds ahead of RBA Gov. Lowe's

economic update. Lowe will speak at 20.05 AEST (11:05 BST), with the address

coming in the wake of a "dovish" set of meeting minutes & an uptick in the

unemployment rate. This has left IBs pricing an ~80% chance of a cut from the

RBA next week.

- There has been very little reaction to a BBG headline which noted that "China

gives new waivers for tariff-free U.S. soybean purchases." BBG & RTRS sources

had already pointed to Chinese purchases of U.S. soybeans over the last 24hrs,

so that explains the limited nature of the moves in the wake of the headline.

- YM +1.0, XM +1.5. YM/XM sits at 28.0 with the cash equivalent at 25.2bp.

- Corporate supply saw MUFG launch 5-Year Fixed/FRN A$ TLAC green paper.

- Bills unch. to 1 tick lower through the reds.

- Some ~A$4.2bn worth of RBA repo ops were spread over 9-, 23- & 48-day ops

today.