Aussie bonds took a hit in the wake....>

AUSSIE BONDS: Aussie bonds took a hit in the wake of the RBA failing to meet

dovish expectations as it left its cash rate unchanged at its first meeting of

2020. The most hawkish note was probably struck by the RBA's failure to signal

any notable lower revisions (if any at all) for its GDP outlook, even as it

flagged near term headwinds i.e. Coronavirus & bushfires. YM finished -3.0, with

XM unch., off reaction lows, but still comfortably lower vs. pre-decision

levels. Flattening pressure was evident during both the early rally and the RBA

induced sell off.

- IBs now price ~30% chance of a cut at next month's RBA decision vs. ~55%

yesterday.

- Contracts were already off of highs on a strong recovery/rally from lows in

Chinese equity markets.

- Bills finished 2-5 ticks lower through the reds.

- The inaugural A$2.5b tap of ACGB 1.25% May 2032 and RBA Governor Lowe's

address on "The Year Ahead" headline tomorrow's local docket.