Bond futures back from lows............>

AUSSIE BONDS: Bond futures back from lows following the in line with exp. AU

wage price index release, after the contracts edged lower ahead of the release.

- Limited flow following the print.

- Last week's SoMP saw the RBA leave its longer run CPI exp. unchanged. The RBA

re-affirmed it sees no need for a near-term hike, though it signalled increasing

employment could fuel domestic inflation down the line, as the RBA noted that "a

gradual pick-up in wages growth is expected as the econ continues to improve &

is likely to be necessary for inflation to be sustainably within the target

range. There remains considerable uncertainty about how soon & how quickly this

might occur."

- Markets pricing in a 78.1% chance of at least on 25bp hike by the RBA by end

of 2019 according to the BBG WIRP function.