Late Monday saw Westpac write "we......>

AUSSIE BONDS: Late Monday saw Westpac write "we expect the uncertainties

surrounding the novel coronavirus to remain the major driver behind outright

sentiment and momentum. When the RBA delivers its March rate cut, it will

confirm a move to 0.25%. Under that scenario there is little scope for a major

correction in AU yields, especially as we see QE buy mid-year. We expect further

new yield lows to be achieved, especially at the long end. Short end valuations

are becoming stretched. Maintain a "range-trading" discipline, while holding

either long or neutral duration. The curve has not steepened significantly

despite the aggressive revision to the RBA cash rate profile. In our view that

reflects the markets understanding that QE is in prospect. We will continue to

look to fade curve steepening impulses."