Bond futures have stuck to tight.......>

AUSSIE BONDS: Bond futures have stuck to tight ranges in SFE hours after they

unwound their Chinese coal import related gains on SYCOM. Australian gov't

officials have attempted to placate the situation. YM last trades -5.0, with XM

-4.5 ticks. YM/XM deals at 45.0, with the cash equivalent at 45.6bp.

- RBA Gov Lowe appeared at his parliamentary testimony, noting that Australian

unemployment can reach 4.5% without triggering a wage breakout. Lowe offered

little to no fresh information on the MonPol front but did concede that the

economy may be softer than the RBA believes it to be.

- Bills trade 1 to 8 ticks lower through the reds at writing.

- Looking to the IB strip, a 25bp cut is 85% priced (based on mids) by year end

after Westpac's adjustment to its RBA rate call on Thursday. 3-Month BBSW has

set lower for 21 consecutive days, and nears levels not seen since March 2018.

RBA repo ops still point to turn premium.

- Focus falls on the ongoing ministerial level Sino-U.S. trade talks, with

China's top trade envoy set to meet U.S. President Trump later today. Domestic

Q4 partials start to hit next week.