Aussie bond futures drifted lower in...>

AUSSIE BONDS: Aussie bond futures drifted lower in early SFE trade on the back

of Tuesday's Tsy move, with both YM & XM off early lows, YM unch., XM -2.5, with

the latter briefly printing through its Tuesday lows. Bills unchanged to 1 tick

lower through the reds, small buying of IRU0U1 seen earlier in the session.

- The final Dec CBA m'fing PMI was a touch softer than flash, 49.2 vs. 49.4.

"The manufacturing downturn was led by the steepest rate of decline in new

orders in the series history during December. Inflows of new sales fell for a

third straight month despite rising exports. This in turn contributed to another

fall in backlogs of work, where further evidence of spare capacity dampened

hiring. Job shedding was reported for the first time in three months, with the

rate of decrease the second sharpest seen since the survey began just over

three-and-a-half years ago." Although worth noting that "despite signs of

weakening conditions, goods producers were at their most upbeat for five months

regarding output in the year ahead. Expectations of improved economic

conditions, higher sales projections and marketing activities were cited as

factors driving growth." CoreLogic house prices due at the top of the hour.