RBA Governor Lowe's failure to.........>

AUSSIE BONDS: RBA Governor Lowe's failure to firmly acknowledge a high chance of

a rate cut at next week's MonPol decision disappointed some participants during

SYCOM hours, which saw the space knee-jerk lower, before a broader assessment of

the tone of the address and wider market dynamics allowed futures to move higher

vs. settlement.

- Lowe's address was largely in line with recent RBA rhetoric and by no means

took a cut off the table, but nonetheless resulted in IB pricing re: the chances

of a cut at next week's decision recede to ~60% before moving back to ~70%, from

the ~80% seen yesterday.

- The main contacts have stuck to a tight range in early SYCOM hours, with YM

+1.0 & XM +2.0.

- YM/XM trades at 25.5, with the cash equivalent at 21.7bp.

- Bills trade 1 tick lower to 1 tick higher through the reds.

- Skilled vacancy data & A$800mn worth of ACGB 2.50% 21 May 2030 supply provide

the highlights of the local docket, while the RBNZ MonPol decision from across

the Tasman may see some spill over in local markets.