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

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

failing to breach yesterday's highs. 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.

- The latest ACGB auction covering A$1.0bn of the 2.75% 21 November 2029 Bond

passed smoothly, with no notable market impact. EuroFima has priced $50mn of

10.5-Year A$ bonds at swaps+58, Toyota Finance Australia pricing is awaited,

while Uni. Of Sydney has mandated banks for 25-Year A$ bond issuance.

- 3-Month BBSW fixed 0.53bp lower today, Bills trade unchanged to 2 ticks

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

by end of 2019 according to the BBG WIRP function.