Little to pen for the Aussie Bond......>

AUSSIE BONDS: Little to pen for the Aussie Bond space, with a fairly typical

AOFM issuance schedule next week in terms of size; 1 larger round of ACGB supply

(DV01 ~1.324mn) & 1 round of I/L supply, although there will not be any buyback

ops next week. YM closed -1.5, XM -3.5, with both contracts failing to breach

their SYCOM lows during SFE trade, and light steepening holding through the

session; YM/XM settling at 36.5. Bills closed 1-3 ticks lower through the reds.

- All 3 of the flash CBA PMI readings edged into contractionary territory, with

the report noting that "this is a particularly disappointing result when

benchmarked against interest rate cuts, tax cuts, rising house prices and a

still solid labour market. Readings on new orders and employment offer a glimmer

of positive news. But the challenges faced by Australian businesses are evident

in the accelerating growth in input prices and the slowing trend in output

prices. Competitive pressures and weak demand are taking a toll."

- GDP partials start hitting next week, with Q3 comp. construction work & capex

due. RBA Gov. Lowe's speaks on unconventional MonPol & lessons from overseas on

Tuesday. RBA Dep Gov. Debelle will speak on employment & wages, also on Tuesday.