Off Best Levels Ahead Of RBA

Aussie bonds continue to trade to the beat of the wider drum ahead of the RBA decision, with futures now off of best levels, but still comfortably above yesterday’s settlement. That leaves YM +4.0 & XM +9.0 as we work towards the RBA decision (due in ~45 minutes time). A quick reminder that almost all of those surveyed look for a 50bp rate hike come the end of today’s decision, with the market virtually fully pricing in such an outcome. Assuming such a decision is seen, focus will quickly turn to the text of the accompanying statement, with the Bank’s updated inflation profile, forward guidance and references to the health of the Australian consumer likely to provide the focal points.