Aussie bond yields last trade 1.8bp....>

BOND SUMMARY: Aussie bond yields last trade 1.8bp lower to 1.4bp higher across

the curve, with the shorter end outperforming. After dipping below the RBA cash

rate of 1.50% for the first time since 2016 yesterday, 3-Year bond yield has

ebbed lower today and last trades at 1.478%. YM last trades +1.0 at 98.56, XM is

unch. at 98.056, with YM/XM +1.5 tick at 50.00. Bills are trading 1 to 4 ticks

higher through the reds. Worth noting RBA's Bullock spoke overnight, pointing to

the soft Aussie housing mkt. RBA remains concerned with falling house prices and

their implications for consumption, stemming from the wealth effect; markets are

increasingly inclined to exp. a cut to the RBA's cash rate by the year-end.

- The Nikkei 225's recovery has added some pressure on JGBs, with JGB futures

last trading at 152.76, 5 ticks below settlement. Cash yields are 0.1bp lower to

1.3bp higher across the curve. Worth mentioning today the BoJ left the size of

its 5-10 Rinban ops unchanged at Y480bn.

- T-Notes trade flattish on the day, last at 122.25, while U.S. 10-Year cash Tsy

yield sits at 2.609%, with yields trading unch. to 0.5bp lower across the curve.

Eurodollar contracts are trading unch. to 0.5 tick lower through the reds.