Bond futures trade a little off of.....>

AUSSIE BONDS: Bond futures trade a little off of best levels after the dovish

RBNZ decision and soft Chinese industrial profit data provided the 2 major focal

points of the session, putting a bid into the space.

- Futures are comfortably higher on the day, with YM & XM both +5.0 ticks. YM/XM

trades at 43.0, with the cash equivalent at 37.9bp. The early curve flattening

has been reversed as shorter

dated paper played catch up in the wake of the dovish turn from the RBNZ.

- The AU/U.S. 10-Year yield spread trades at -64.4bp.

- Bills trade 3-5 ticks higher through the reds. RBA repo operations saw

A$1.215bn worth of 43-day ops dealt at an average of 2.033%.

- The dovish RBNZ decision drove buying interest in the IB strip, with

interpolated OIS pricing in an ~80% chance of at least one RBA rate cut by year

end, up from ~75% yesterday.

- Job vacancy data headlines the docket tomorrow.