Bond futures threatened a lean break...>

AUSSIE BONDS: Bond futures threatened a lean break above their SYCOM highs in

early Sydney trade after headlines pointed to an attack on/near Taji base in

Iraq, which house U.S. troops, but faded as it seemed that the alarms coming

from the base represented a test, as opposed to an attack.

- Still, YM & XM print higher than Tuesday's settlement, with worry over the

economic effects of the Australian bushfires and a very weak ANZ job ads print

(largely attributed to the bushfires) provided a bid over the last 24 or so

hours.

- YM +1.5, XM +3.5, leaving the curve flatter, with YM/XM -1.5 at 43.5.

- Bills print unchanged to 2 ticks higher through the reds.

- The IB strip now prices a 58% chance of an RBA cut in Feb, up from the 38%

priced at the turn of the year.

- Building approvals and job vacancy data headline the local docket today.