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

AUSSIE BONDS: Aussie bonds turned bid on the back of the minutes from the RBA's

most recent MonPol decision, although the move was relatively limited.

- 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 46.7bp.

- Bills trade 2-3 ticks higher through the reds. The latest round of RBA repo

operations saw A$450mn worth of 24-day ops dealt at an average of 1.860%, while

A$1.731bn worth of 83-day ops were dealt at an average of 1.826%.

- Chinese GDP and economic activity data will provide the highlight for

participants on Wednesday.