No huge reaction to the RBA's latest...>

AUSSIE BONDS: No huge reaction to the RBA's latest SoMP, with the space

knee-jerking higher on the back of the cut in the 2019 GDP expectations.

- In terms of the MonPol outlook, the Bank revealed little new as it noted that

"at its recent meeting, the Board focused on the implications of the low

inflation outcomes for the economic outlook. It concluded that the ongoing

subdued rate of inflation suggests that a lower rate of unemployment is

achievable while also having inflation consistent with the target. Given this

assessment, the Board will be paying close attention to developments in the

labour market at its upcoming meetings."

- The combination of no outright easing bias being adopted by the RBA and

broader flows surrounding U.S.-China trade matters has allowed the space to

trade back from the reaction highs.

-YM last -1.0 tick, with XM -3.0 ticks. YM/XM at 48.5 ticks, with the cash

equivalent at 45.1bp. Bills trade unchanged to 1.0 tick higher through the reds.

- The AOFM's weekly issuance announcement is scheduled for the top of the hour.