Bonds hit lower on the back of the.....>

AUSSIE BONDS: Bonds hit lower on the back of the Australian labour market

report, which showed a solid bounce back in headline jobs growth after last

month's fall, facilitating a modest downtick in the unemployment rate as the

participation rate held steady.

- Looking deeper into the details of the report, it wasn't as upbeat, gains were

largely driven by part time jobs and the prior headline fall was revised deeper

into -ve territory. That being said, the RBA will take the fall in unemployment,

and now looks to the Dec report for more clarity ahead of its Feb meeting.

- Elsewhere, the underemployment rate moderated to 8.3% in Nov, from 8.5% in

Oct, while the underutilisation rate eased to 13.5% from 13.8%.

- YM & XM trade off their respective lows, probably on the caveats highlighted

above, but are still comfortably lower post-release, both down 6.0 ticks vs.

settlement. Bills print 3-5 ticks lower through the reds.