Lowe's MonPol Comments Generate Light Bid

Aussie bonds blipped higher after the RBA published the latest speech from Governor Lowe, who outlined three scenarios for ending the QE programme in 2022. The options will be considered at the February Board meeting, barring any unanticipated major setbacks for the economy. The Governor noted that the decision has not been made yet and much will depend on the news received before the Board sit down for their discussions in February. Lowe's remark that "we are still a fair way from" the point where inflation is sustainably in the +2.0%-3.0% target range accompanied by another pushback against a rate hike in 2022 may have been interpreted as marginally dovish.

• Cash ACGB yields have backed off earlier highs, reached as overnight post-FOMC impetus kicked in. Yields now trade +2.0-2.7bp across the curve. YM popped higher and trades -2.1, XM sits -2.5 after a limited uptick. Bills run unch. to -5 ticks through the reds.
• Earlier today, flash readings of Australia's Markit PMIs showed a slight deceleration in expansion across both manufacturing and services sectors. The ACGB space shrugged off the release.
• Focus in Australia moves to consumer inflation expectations and monthly jobs market report, due shortly.