Space little moved on the back of......>

AUSSIE BONDS: Space little moved on the back of the latest round of domestic

data; soft retail sales print (-0.1% M/M Vs. BBG median of +0.2%) that was

quickly retraced, while the Q1 GDP constituents were in line with BBG consensus.

- Focus remains locked on the RBA MonPol decision & speech from Governor Lowe

due this afternoon/evening, with almost all of the economists surveyed looking

for a cut and market fully discounting such a move.

- YM last +1.5 ticks, with XM +2.5 ticks. YM/XM trades at 38.5 ticks, with the

cash equivalent at 36.7bp.

- Bills trade unchanged to 2 ticks higher through the reds. This morning's RBA

repo operations saw another hefty round dealt; A$900mn worth of 17-day ops

allotted at an average of 1.362%, A$825mn worth of 37-day ops allotted at an

average of 1.357% & A$1.2bn worth of 77-day ops allotted at an average of

1.318%.