Space sells off on the glass...........>

AUSSIE BONDS: Space sells off on the glass half-full tone in the RBA's statement

which accompanied its decision to leave its cash rate unchanged. The most

hawkish note was probably struck but the RBA's failure to signal any notable

lower revisions (if any at all) for its GDP outlook, even as it flagged near

term headwinds i.e. Coronavirus & bushfires. Potential for some upgrade to the

Bank's CPI track as well, although underlying inflation exp. will probably be

unchanged in Friday's SoMP. Most quick comments with contacts have pointed

towards an RBA that is unwilling to cut, probably given close proximity to the

cash rate's ELB, and perhaps some uncertainty re: the aforementioned growth

headwinds i.e. the RBA would prefer to keep its powder dry, so maybe not quite

as upbeat as some have perceived.

- YM -2.5, XM -0.5, off reaction lows, but still comfortably lower vs.

pre-decision levels.

- Bills sit 2-5 ticks lower on the day vs. settlement through the reds.

- IBs now price 32% chance of a cut at next month's decision vs. ~55% yesterday.