Aussie bond futures meandered in a.....>

AUSSIE BONDS: Aussie bond futures meandered in a tight range during SFE trade,

YM +2.0, XM +1.5, operating at highs as we move towards the close, leaving YM/XM

at 37.0 and the cash equivalent at 34.9bp.

- The rate of expansion softened across all 3 of the flash CBA PMI surveys, with

CBA also noting that "the employment component of the PMI remained just above

the 50 mark. A softer pace of jobs growth will make it harder for the RBA to

achieve their goal of full employment. We expect another 25 basis point cash

rate cut in February, with the risk lying towards further policy easing."

- On the issuance front Tasmanian Public Finance Corporation (TASCORP) priced

A$450mn of a new 2.00% 24 January 2030 benchmark bond at 74bp over futures/73bp

over ACGB 2.50% 21 May 2030.

- Bills sit unch. to 3 ticks higher through the reds.

- An uncovered 3-month bill auction from the AOFM generated some interest, but

several experienced market hands played down its relevance and pointed to solid

demand in today's 6-month bill tender, as well as technical matters at play.

- The AOFM weekly issuance schedule headlines tomorrow's local docket.