Aussie bonds await RBA Cash Rate.......>

AUSSIE BONDS: Aussie bonds await RBA Cash Rate Targets announcements as both

benchmarks lie relatively flat from the open of the SFE, only having moved

within a 2 tick range. The 3-Year was last up 1 tick at 97.800 and the 10-Year

was last up 1.5 ticks at 97.1150, the 10-Year dipped 2 ticks after Aus Building

approvals came in at +0.4% in Aug from -1.7% in July. During SYCOM Aussie Bonds

trailed U.S Tsys on risk off bidding post Spain/Catalan vote and US Las Vegas

shooting whereby the death toll is currently above 50, Tsys/Aussie B's then

dipped on very strong 60.8 Sept. US ISM Manufacturing Index, highest since 1987.

- Bloomberg has an unchanged rate surveyed for the target announcements and the

Commonwealth Bank of Australia has made similar predictions, they said, 'The RBA

is widely expected to leave the cash rate unchanged at 1.50% and reiterate its

neutral stance. The Australian economic data has definitely improved (CBA's

manufacturing PMI rose to 53.8 in September) but we expect the RBA to reinforce

it is in no hurry to begin raising interest rates.'

- Yields are up across curve, 3-Year up 1.3bp, 10-Year up -0.8bp.