Bonds given on the back of the AU......>

AUSSIE BONDS: Bonds given on the back of the AU labour market report, with a

much stronger than expected headline reading of +32.8K jobs added, with

marginally +ve revisions, meaning that the unemployment rate held steady at 5.0%

vs. exp. for an uptick to 5.1%. Furthermore, the additions were solely driven by

full time jobs growth.

- YMZ8 saw ~4.0K given from 97.815 through 97.810.

- AU Bonds underperform Tsys on the back of the release with the AU/U.S. 10-Year

spread at ~-40.5bp last, with the domestic 3-/10-Year yield spread flattening

below 60.0bp.

- Wage growth remains the missing part of the puzzle for the RBA, with firms

seemingly more interested in adding remuneration via bonuses, instead of

committing to larger wage increases, at least for the time being.