Coronavirus related headlines drove....>

AUSSIE BONDS: Coronavirus related headlines drove some flow, but that has been

covered elsewhere, so we will cover local developments here. Aussie bond futures

ticked lower on the release of local CPI data, which topped market consensus &

prompted the trimming of RBA easing bets. Headline Y/Y CPI was marginally short

of RBA exp., but topped consensus, while the trimmed mean metric met RBA exp,

although both remain shy of the RBA's inflation target band. Food (drought

related), fuel & tobacco (tax) were the driving factors for headline inflation.

- Cash markets had to play catch up to the about face turn seen in risk

sentiment during Tuesday's European & U.S. sessions.

- Space edged away from late session lows ahead of the close.

- IBs now price a mere ~10% chance of a rate cut at next week's RBA meeting,

with the likes of J.P.Morgan & RBC pushing back their calls for RBA cuts in the

wake of today's data.

- Also worth flagging that a Moody's research piece noted that climate-related

risks pose a long-term credit challenge for NSW.

- Terms of trade data headlines Thursday's local docket.