Bonds took a hit on the back of the....>

AUSSIE BONDS: Bonds took a hit on the back of the local labour mkt report, which

showed a solid bounce back in headline jobs growth after last month's fall,

surpassing exp. & facilitating a modest downtick in the unemp. rate as

participation held steady. Looking deeper into the details of the report, it

wasn't as upbeat, gains were largely driven by part time jobs & the prior

headline fall was revised deeper into -ve territory. That being said, the RBA

will take the fall in unemployment, and now look to the Dec report for more

clarity. IBs now price a ~45% chance of an RBA cut in Feb, down from the ~60%

seen at yesterday's close, but we should remember that the unemp. rate has

hovered in a 5.2-5.3% range for 8 straight months, well above the RBA's full

employment estimate of 4.5%, and after all, one print doesn't make a trend.

Elsewhere, underemployment & underutilisation edged lower.

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

above, but were still comfortably lower after a little bit of chop. YM -7.0, XM

-6.5. Bills went out 6-7 ticks lower through the reds, with a buyer of IRM0M1

probably providing the highlight on the flow side.