Australian markets have shrugged off...>

AUSSIE BONDS: Australian markets have shrugged off the release of the latest

labour market report, with the headline employment change providing a modest

beat, although the breakdown and revisions pointed to a reduction of full time

jobs.

- The unemployment rate for December was revised up to 5.6% from 5.5%, but a

fall in participation rate in January ensured that the jobless rate fell in the

latest month. 

- Monthly hours worked fell sharply, down 24.1 million hours. A part of this

could be explained by the fall in full-time jobs.

- Aussie bonds have operated in a narrow range following the release, while the

AUDUSD blipped lower, before buyers stepped in ahead of 0.7900.

- The limited market reaction is probably attributable to the volatility of this

particular release and the recent dovish rhetoric from the RBA.