Aussie Bonds continue to track US......>

AUSSIE BONDS: Aussie Bonds continue to track US Tsys, and have ebbed away from

early session lows ahead of today's RBA MonPol decision. 

- All of those surveyed expect the RBA to stand pat at today's decision. It's

unlikely the RBA will make any change to the guidance, so the most important

part of the statement may be the one on the housing market as this is where the

key downside risk to the economy lies. Elsewhere comments re: GDP partials &

their impact on the Bank's economic outlook will be eyed.

- The IB strip isn't fully pricing a 25bp hike until October of 2019, while the

OIS strip is only pricing in around 6bp worth of tightening over the next 12

months.

- Elsewhere Australian Q1 BoP Current A/c & Net Exports % of GDP data will be of

particular interest given yesterday's strong GDP partials.

- The space continues to operate around familiar levels with the AU/US 10-Year

spread at ~-19.0bp and the domestic 3-/10-Year yield differential at ~63.0bp.

Bill trade has been listless thus far.