Aussie bonds turned bid on the back....>

BOND SUMMARY: Aussie bonds turned bid on the back of the minutes from the RBA's

most recent MonPol decision, although the move was relatively ld. The minutes

reiterated the idea that the Board saw no strong case for a near-term move in

interest rates. However, the Board "discussed the scenario where inflation did

not move any higher and unemployment trended up, noting that a decrease in the

cash rate would likely be appropriate in these circumstances." The Bank went on

to note that inflation will likely remain muted for some time, meaning that the

likelihood of a near-term cash rate hike is low. Ultimately, the Board continues

to juggle the outlooks for growth & the labour mkt. YM last +3.0 ticks, XM +2.5

ticks. YM/XM trades at 50.5 ticks, with the cash equivalent at 46.5bp.

- A lack of concession, followed by a strong 20-Year auction, supported JGBs,

allowing futures to move into positive territory in the Tokyo afternoon. The

contract last trades +4 ticks, with bull flattening creeping into the curve.

- T-Notes stuck to a tight range, ignoring comments from Fed voter Rosengren.

T-Notes last 123.06, with yields 0.4-1.0bp lower across the curve.

- German fixed income futures trade at virtually unchanged levels.