MNI MARKETS ANALYSIS: Aussie Bills.....>

AUSSIE BONDS: MNI MARKETS ANALYSIS: Aussie Bills Weekly Update

- Offshore events put a modest bid into the space this week; namely a dovish

RBNZ statement, worries regarding U.S. yield curve inversion & increased

speculation surrounding ECB tiering. There was little to report on the domestic

front, with job vacancies continuing to rise (albeit at a slower pace).

- A lack of turn pressure has been evident in the 3-Month BBSW fixings this

quarter, with the rate ~30bp back from the YtD high. This was likely aided by

the recent large redemption in the ACGB space & notable quarterly dividend

payments from ASX 200 constituents. This hasn't stopped the Australian

3-Month/10-Year curve from inverting.

- Traders eye the ongoing Sino-U.S. trade talks in Beijing, with the return leg

next week. Chinese off'l PMI data is due over the weekend & could set the tone

early next week. That being said, the domestic docket is packed with risk.

Monday brings the release of the NAB biz. survey, Tuesday will see the RBA issue

its latest MonPol decision, the release of the latest gov't budget & the monthly

building approvals print. Retail sales & trade balance are due Wednesday.