Soft Chinese trade data pushed.........>

AUSSIE BONDS: Soft Chinese trade data pushed futures to fresh SFE session highs,

with contracts operating just off of best levels at writing.

- YM last trades +1.5 ticks, with XM +5.5 ticks. YM/XM trades at 42.5, with the

cash equivalent at 43.6bp. The AU/U.S. 10-Year yield spread trades at -61.2bp.

- NAB were the latest to jump on the RBA cut bandwagon, looking for the central

bank to cut rates twice in 2019, once in July and once in November. NAB wrote

that "growth appears to have lost significant momentum, placing at risk further

improvement in the labour market at a time when inflation poses little

constraint on policy and financial stability risks have abated."

- A modest bid was triggered after the latest AOFM weekly issuance schedule

revealed that there will be no conventional bond supply next week, with only one

small I/L tender noted.

- The latest ACGB auction result was largely ignored by futures traders.

- Bills trade 1-5 ticks higher at writing. RBA repo ops saw A$300mn of 14-day

operations dealt at an average of A$300mn, A$1.53bn worth of 38-day ops sent at

an average of 2.037%.