Bond futures unwound their Chinese.....>

AUSSIE BONDS: Bond futures unwound their Chinese coal import related gains on

SYCOM, with Chinese officials giving no comment on the matter, while Australian

Treasurer Frydenburg played down the report early on Friday.

- YM last trades 5.5 ticks back from settlement as a result, with XM 4.0 ticks

lower on the day. YM/XM deals at 44.5, with the cash equivalent at 44.7bp.

- RBA Gov Lowe appeared at his parliamentary testimony, noting that Australian

unemployment can reach 4.5% without triggering a wage breakout. Lowe offered

little to no fresh information on the MonPol front but did concede that the

economy may be softer than the RBA believes it to be.

- Elsewhere RBA's Debelle spoke, with the focus on hypotheticals around QE.

- Bills trade unchanged to 8 ticks lower through the reds at writing.

- Looking to the IB strip, a 25bp cut is almost fully priced in by year end

after Westpac's adjustment to its RBA rate call on Thursday.

- Focus today falls on the AOFM's weekly issuance schedule and the ongoing

ministerial level Sino-U.S. trade talks, with BBG suggesting that China's top

trade envoy is set to meet U.S. President Trump later today.