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Bond futures knee jerked higher at.....>

AUSSIE BONDS
AUSSIE BONDS: Bond futures knee jerked higher at the SFE re-open, on the back of
the hawkish trade comments from Lighthizer and Mnuchin. The main contracts
failed to breach Monday's best levels and have subsequently eased back. YM unch.
vs. settlement and XM +1.0 tick. YM/XM trades at 51.5bp, with the cash
equivalent at 47.8bp.
- Bills trade 1 tick higher to 1 tick lower through the reds.
- Domestic retail sales & trade balance provide the pre-amble to today's key
risk event, the RBA MonPol decision. While the Bank doesn't have a formal easing
bias in place (although the scenario analysis in the minutes of the most recent
meeting placed more focus on issues that would trigger a rate cut), the soft Q1
CPI print may force its hand at what is the first "live" meeting in some time.
Our preview of the event is available below:
- https://emedia.marketnews.com/RBA_Preview_May_2019.pdf
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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