The Aussie Bond space was pressured....>

AUSSIE BONDS: The Aussie Bond space was pressured by semi pricing from NTTC.

Futures sit back from best levels as a result, but they have also recovered from

their respective SFE lows, YM deals +1.0 vs. settlement, with XM +2.0 on the

day. This has seen the curve move away from flattest levels, YM/XM deals at 42.0

ticks, with the cash equivalent at 38.2bp.

- RBA Asst. Gov. Kent spoke early today. His initial address covered the

Committed Liquidity Facility & was fairly bland as he noted that local lenders

can lift holdings of local bonds & pay more to use the facility owing to the

proportional decline of foreign buy & hold investors of Australian paper. In

subsequent remarks Kent noted that there is a low chance of QE in Australia, and

that the RBA is a "long way" away from that, although he stressed that the Bank

will adjust policy to meet its targets if needed.

- Bills trade unchanged to 1 tick lower through the reds, on light volume.

- Flash PMI & skilled vacancies data provide the highlights of the local docket

tomorrow, although participants continue to look to an address from RBA Governor

Lowe, scheduled for Thursday, as the next major local risk event.