Bonds failed to take out the SYCOM.....>

AUSSIE BONDS: Bonds failed to take out the SYCOM highs despite the risk off

flows apparent on the back of the softer CNY, and have edged lower in the wake

of the RBA MonPol decision as Tsys moved away from best levels.

- The RBA's MonPol statement offered little in the way of fresh information for

participants to digest, as the Bank left the cash rate unchanged at 1.5%. The

Bank stated that some further tightening of mortgage lending standards is

possible but referred to the continued decline in interest rates paid via

mortgages over "some time". The RBA also noted that it remains to be seen how

persistent the rise in local money market rates is. The Bank also highlighted

the softening of house prices in Sydney & Melbourne.

- SAFA launched their heavily touted May 2028 Bonds.

- The domestic 3-/10-Year yield differential & AU/US 10-Year spread operate at

familiar levels.

- Repo rates eased again today as short end pressures alleviate after the turn

of the FY, but the late downtick in Bonds has left the white and red Bill

contracts 1 tick worse off on the day.