Bulls relinquished early control on....>

AUSSIE BONDS: Bulls relinquished early control on the back of a strong domestic

labour mkt report. Headline job additions surpassed exp. (although full time

employment fell marginally), facilitating a downtick in the unemployment rate as

participation held steady. Market pricing re: a Feb cut from the RBA fell to

~25% vs.~55% yesterday as a result, with the likes of CBA, ANZ, UBS, Citi &

Nomura pushing back their easing calls from Feb.

- YM drove the move, as you would expect in that environment, before futures

jumped in late trade, potentially on the back of deepening losses for Chinese

equity markets, linked to the Coronavirus.

- YM finished 2.5 ticks lower, with XM +1.5 ticks, as the curve twist flattened,

after bull and then bear flattening was evident during Sydney trade. YM/XM shut

3.5 ticks flatter at 39.0, but off of extremes.

- Bills finished 1-7 ticks lower through the reds, with the front end of the

strip leading.

- Flash CBA PMIs and the weekly AOFM issuance schedule headline tomorrow's local

slate.