Aussie bond futures spiked to fresh....>

AUSSIE BONDS: Aussie bond futures spiked to fresh all-time highs as the domestic

labour market data revealed a surprise increase in the unemployment rate, before

fading from best levels as job growth topped expectations (albeit driven solely

by part-time work) and as profit taking on some options positions kicked in. The

participation rate was the driver behind the uptick in the unemployment rate,

with underemployment also edging higher, adding to the uncertainty observed in

recent soft survey data.

- The pullback saw contracts virtually touch pre-release levels before they

started to tick higher again.

- YM trades +3.5 ticks, with XM +4.0 ticks. YM/XM deals at 47.5 ticks, with the

cash equivalent at 44.1bp.

- Bills trade 2-4 ticks higher through the reds. RBA repo operations saw A$500mn

of 19-day ops dealt at an average of 1.695% and A$1.57bn worth of 35-day ops

dealt at an average of 1.670%.

- OIS now price a 50% chance of an RBA cut next month, back from the knee-jerk

reaction highs.