Space further bid in lieu of the.......>

AUSSIE BONDS: Space further bid in lieu of the minutes from the RBA's Dec

meeting where the Board noted that "members agreed that it would be important to

reassess the econ outlook in Feb '20, when the Bank would prepare updated

forecasts." The minutes also stated that "members noted that the Board had the

ability to provide further stimulus to the econ, if required" even after

"members recognised the negative confidence effects for some parts of the

community arising from lower interest rates, they judged that the impact of

these effects was unlikely to outweigh the stimulus to the econ from lower

interest rates." The Bank is still of the view that "domestically, after a soft

patch in H218, the Australian econ appeared to have reached a gentle turning

point." But ultimately reiterated that "the Board would continue to monitor

developments, including in the labour market, and was prepared to ease monetary

policy further if needed to support sustainable growth in the economy, full

employment and the achievement of the inflation target over time."

- YM -1.5 on the day, XM -2.0. Bills unchanged to 2 ticks lower through the

reds.