Major bond futures operate in a........>

AUSSIE BONDS: Major bond futures operate in a tight range in early SFE trade,

off of the SYCOM lows. YM -3.5 with XM -5.5, leaving YM/XM at 34.0 and the cash

equivalent at 32.6bp.

- Bills deal 2-4 ticks lower through the reds.

- Retail Sales provides the focal point of today's local docket, although focus

is already on the statement that will be released alongside tomorrow's RBA

MonPol decision. Markets price a mere 6% chance of a cut from the RBA on

Tuesday, with none of those surveyed by BBG looking for a move. Melbourne

Institute inflation data, ANZ Job ads and A$400mn of ACGB 2.75% 21 Apr 2024

supply is also due today.

- As an aside, it is worth noting that RBA watcher Terry McCrann has suggested

that the new policy agreement between the government and the RBA will be

announced on Tuesday. Most expect such moves to be fairly superficial, although

some suggest that the Governor may be required to write a letter to the gov't

when the inflation target is missed, a la BoE.