Futures trade around pre-RBA levels,...>

AUSSIE BONDS: Futures trade around pre-RBA levels, virtually unchanged on the

day. Little notable reaction to the RBA cut, which was fully priced. Space

actually ticked lower on the decision/statement. This came after the Bank failed

to explicitly commit to further cuts, but such an indication may be given in RBA

Governor Lowe's evening speech in Sydney (as we highlighted beforehand).

- CBA have passed through all of the RBA cut to their variable rate products,

ANZ have passed 18bp through. These moves likely helped with the post-RBA

gyrations. The ANZ move came first, with CBA following.

- YM/XM last deals at 39.0 ticks, with the cash equivalent at 37.4bp.

- Bills trade unchanged to 1 tick lower through the reds. This morning's RBA

repo operations saw another hefty round dealt; A$900mn worth of 17-day ops

allotted at an average of 1.362%, A$825mn worth of 37-day ops allotted at an

average of 1.357% & A$1.2bn worth of 77-day ops allotted at an average of

1.318%.