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

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

flows apparent on the back of the softer CNY. Participants await today's RBA

MonPol decision, with the domestic 3-/10-Year yield differential & AU/US 10-Year

spread continuing to operate around familiar levels.

- All of those surveyed expect the RBA to leave its cash rate unchanged at 1.5%,

so focus will fall on the Bank's rhetoric employed in the statement. CPI and

wage growth remain subdued. The last decision saw the RBA introduce risks around

Italy, some EM economies and tighter domestic lending standards, while the

minutes of that meeting removed the reference to the greater likelihood of the

next move in the cash rate being up as opposed to down. Dovish risks include the

RBA giving a greater acknowledgement of global trade war risks and increased

worry regarding housing prices and the knock on effects for consumption.

- SAFA launched the heavily touted "upto A$1bn" of new syndicated May 2028

Bonds.

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

of the FY. The white & red Bill contracts last trade virtually unchanged.