Bonds were under pressure in the.......>

AUSSIE BONDS: Bonds were under pressure in the wake of the latest RBA MonPol

decision, as the Bank failed to allude to a more neutral view on MonPol as it

left the cash rate unchanged.

- The bank trimmed its GDP forecast to 3.0% for 2019 (prev. 3.25%) and a little

below that level in 2020, which will be formalised in Friday's SoMP. The Bank

also noted that some downside risks to the economy have increased, highlighting

uncertainty around domestic consumption owing to lower house prices. The Bank

now looks for 2.0% underlying inflation in 2019, rising to 2.25% next year.

- The Bank noted that the labour market remains strong, with a continued focus

on the 4.75% unemployment rate. The Bank expects a tightening labour market to

lift wages over time, albeit gradually.

- The Bank also tipped its hat to slowing demand for owner-occupier housing

credit, and a period of adjustment in Melbourne & Sydney house prices. - YM and

XM last -1.5 ticks apiece, YM/XM last 49.0, with the cash equivalent at 48.1bp.

Bills now trade unch.-1 tick lower through the reds, unwinding the early bid.

- Focus now moves to an address from RBA Gov. Lowe tomorrow.