Aussie Bond futures continued their....>

AUSSIE BONDS: Aussie Bond futures continued their grind higher on SYCOM, being

tugged along by the global FI bid. Wednesday's SFE session saw 2 bursts of

buying, one on the back of a soft GDP print (which missed both the RBA's exp.

and market median, which had been revised lower in the wake of the GDP

partials). Futures then legged higher on the back of J.P.Morgan changing their

RBA call. JPM are now looking for 2 rate cuts, one in July & one in August.

Macquarie also changed their call, looking for 50bp worth of easing from the RBA

in 2019.

- YM last +1.0, with XM +3.5. YM/XM deals at 46.5. Bills trade 1 tick higher to

1 tick lower through the reds. 3-Month BBSW fixed ~1.7bp lower today, while RBA

repo ops saw $750mn worth of 12-Day ops dealt at an average of 1.727%, while

A$1.04bn worth of 34-day ops were dealt at an average of 2.039%. Steady buying

of IBJ9 noted at 98.52 in early SFE trade after a fairly aggressive reprice in

OIS in the wake of yesterday's developments. BBG's WIRP now prices in a 75%

chance of at least one cut by year end, based on interpolated OIS.

- Trade data, and retail sales provide the points of interest today.