Bond futures trade around best.........>

AUSSIE BONDS: Bond futures trade around best levels, sticking to a tight range.

The contracts moved back from session lows following the in line with exp. AU

wage price index release, after edging lower ahead of the print. Wage growth

accelerated at the fastest pace observed in 3-Years (in Y/Y terms), but some

were looking for an upside surprise, highlighted by short dated put buying in

recent sessions, with the contract covering today's data, as well as tomorrow's

labour mkt report. Some small IB sellers were also noted ahead of the release.

- Last week's RBA SoMP saw the Bank leave its longer run CPI exp. unch. The RBA

re-affirmed it sees no need for a near-term hike, signalling increasing

employment could fuel domestic inflation down the line, noting that "a gradual

pick-up in wages growth is expected as the econ continues to improve & is likely

to be necessary for inflation to be sustainably within the target range. There

remains considerable uncertainty about how soon & how quickly this might occur."

- 3-Month BBSW fixed 0.53bp lower today, Bills trade unchanged to 1 tick lower

last. Markets pricing in a 78% chance of at least one 25bp hike by the RBA by

end of 2019 according to the BBG WIRP function.