Curve has flattened since..............>

AUSSIE BONDS: Curve has flattened since yesterday's close, with YM failing to

punch through yesterday's Sydney highs (despite 3.0K worth of lifts over 2 clips

at 99.300 in early Sydney trade today), ranges were fairly tight on SYCOM. XM

has run a little higher in early SFE dealing, leaving YM unch., and XM +2.0,

YM/XM into 41.0 as a result.

- Bills running unchanged through the reds as we type.

- Focus falls back onto domestic issues today, at least temporarily, with Dec's

labour market report due. Nov's headline jobs growth was outsized vs. estimates,

although there was likely a degree of "statistical payback" in play after Oct's

losses. Furthermore, Nov's gains were largely driven by part-time hires. This

reading, coupled with next week's Q419 CPI print, and the assessment of the

ongoing bushfires will be key inputs into the RBA's first MonPol decision of

2020 (due Feb 4). IBs currently price a ~60% chance of a cut in Feb.