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

AUSSIE BONDS: MNI ANALYSIS: Aussie Bills Weekly Update

- The Bill strip finished the week little changed. Even with a dovish Fed, RBA's

Harper reiterating that the next move in the cash rate will likely be up, in

line with RBA expectation underlying CPI data, a lack of any notable

developments in Sino-U.S. trade relations & a weak Caixin manufacturing PMI

provided plenty of risk events.

- RBA repo operation rates consolidated back above 2.00%.

- The comments from RBA's Harper re: the next move in the cash rate likely being

up has led to markets pricing a ~25% chance of a RBA rate cut by year end, down

from ~40% at this time last week.

- Next week's AU docket is busy, with the first RBA decision of 2019, an address

from RBA Gov. Lowe, the Bank's quarterly SoMP and the findings from the Royal

Commission on the banking sector all due. Elsewhere retail sales, trade balance

& quarterly NAB business confidence will hit.