Bond futures have taken a hit on the...>

AUSSIE BONDS: Bond futures have taken a hit on the back of a much stronger than

expected domestic labour market report.

- 39.1K jobs were added vs. the BBG consensus of 15.0K, with the gains coming

solely from full-time roles, as part time employment fell (revisions were a

negative at the margin). The strong headline print managed to counter a marginal

uptick in the participation rate, allowing the unemployment rate to hold steady

at 5.0%.

- The reading will please the RBA, as it continues to look to the strength in

the labour market as a source of solace, even noting that the health of the

labour market provides a contrast to other areas of the economy.

- YM -4.5 ticks, XM -3.0 ticks. YM/XM trades at 43.0 with the cash equivalent at

42.5bp

- Bills trade unchanged to 6 ticks lower through the reds.