On SFE both Aussie bond benchmark......>

AUSSIE BONDS: On SFE both Aussie bond benchmark contracts rallied post retail

sales data, the 3-Year was last at 98.060 and the 10-Year last at 97.405. 

- Post data sources reported 5k IRM8/U8 given at 7, 25k bought in Aussie 3s from

98.03 to 98.07, 5k Aussie Bank Bill (IRZ7) bought at 98.28 and Aussie 3's

options blocked up... YMZ7 97.90/80 1x2 ps trades for 1 tick x 4k. Further

sources said, "I think a lot of the price action today was stops as we traded

through 200 DMA." 

- The retail prices showed another weak set of data from Australia, ANZ said: "

Retail sales recorded another disappointing month, with sales flat in September

after two consecutive monthly declines (of -0.8% in total). Retail sales are now

just 1.4% higher than a year ago and are down 2.8% on a three month-end

annualised basis - both the weakest readings since late 2010." 

- Aussie bond yields still under heavy pressure, 3-Year down 6.3bp and the

10-Year down 8.2bp. 

- Next week we have the RBA Board Meeting and Statement on MP. RBC expect the

RBA to leave the cash rate unchanged, marking the 15th month of steady cash.