MNI ANALYSIS: Aussie Bills Weekly......>

AUSSIE BONDS: MNI ANALYSIS: Aussie Bills Weekly Update

A calmer week for Bills when compared to last, with some of the bid unwinding as

IRZ8 rolled off the board and focus fell on funding pressures into year-end. The

white and red contracts finished this week's SFE trade 3-5 ticks lower than last

week, showing a modest pull back, although IRH9H0 flattened to fresh lows as the

aforementioned funding pressures played out.

- The IB strip continues to trade above 98.50 through the duration of 2019,

implying minimal chances of a cut from the RBA at some point during the year.

- RBA Assistant Governor Chris Kent was the second Bank official to allude to

the potential for a cut in the cash rate if required (in the wake of last week's

poor GDP data) when he spoke earlier this week, although much like RBA Deputy

Governor Guy Debelle last week, this alluded more towards scenario analysis as

opposed to any central thought process at the Bank.

- Plenty of domestic risk events are scheduled for next week, with the govt's

MYEFO due Monday, RBA December meeting minutes up on Tuesday, followed by

November's labour market report on Thursday.