Dust has settled after the latest......>

BOND SUMMARY: Dust has settled after the latest speech from RBA Gov Lowe, who

put a question mark over the effectiveness of further rate cuts and called for

increased fiscal and infrastructural spending from the Australian gov't.

- YM & XM both last trade 2.5 ticks lower, while cash yields sit 2.0bp to 2.6bp

higher across the curve, with a degree of bear steepening noted. Bills last seen

1-3 ticks lower through the reds.

- T-Notes last +0-03 at 127-19+. Cash Tsy yields are unch. to 0.4bp higher, with

some modest bear flattening apparent. Eurodollar contracts are unch. to 1.5 tick

higher through the reds.

- JGB futures finished the morning session at 153.82, 11 ticks below settlement,

pressured by a recovery in the Nikkei 225. The yield curve has bear steepened a

touch.