Futures have ticked away from their....>

AUSSIE BONDS: Futures have ticked away from their SYCOM lows after softening

overnight, with no reaction to the NZ GDP print from across the Tasman, as

participants focus squarely on today's domestic labour market report.

- YM -1.5, XM -2.5, YM/XM 1.0 steeper vs. settlement at 48.5. Bills print 1-2

ticks lower through the reds.

- The RBA will receive two month's worth of labour market data before it

convenes again, owing to its January hiatus. The two prints will no doubt form

the central part of discussion re: MonPol settings (barring any huge swings in

matters abroad). While this month may provide some statistical payback in the

headline job numbers (after last month's shock decline), concern remains, with

the RBA continuing to focus on promoting full employment (which it sees at

4.5%). Job vacancies remain on a downward trend, while underutilisation and

underemployment will continue to be scrutinised.

- There will also be some focus on the upcoming T-Bill supply, with some wary of

elevated repo rates & October's uncovered auction.