Aussie bonds traded in a similar.......>

AUSSIE BONDS: Aussie bonds traded in a similar fashion to U.S. Tsys with little

to go off in terms of domestic headline news flow, while across the Tasman, RBNZ

Governor Orr & Deputy Governor Hawkesby reiterated similar rhetoric to that

which accompanied yesterday's surprise 50bp rate cut. YM last -3.0 with XM -0.5,

just off their respective lows, leaving the curve flatter on the day as YM/XM

deals at 30.5.

- We also saw comments from RBA's Bullock which were not focused on MonPol, but

she did suggest that Australia's largest retailers are generally well-placed to

weather the effects of the sluggish domestic economy.

- Bills deal 2-4 ticks lower through the reds.

- Friday will be headlined by the release of the RBA's latest SoMP as well as

RBA Governor Lowe's semi-annual testimony to a parliamentary committee. The IB

strip prices a circa 60% chance of a cut at the RBA's September meeting at

present.