The defining factor of today's.........>

AUSSIE BONDS: The defining factor of today's session was a much softer than exp.

domestic building approvals print, which put a bid into the space, in what was

an otherwise lacklustre session. The findings of the Royal Commission into the

banking sector saw 24 misconduct cases referred to regulators, with 76

recommendations made, based on simplifying law and enhancing governance. Bonds

have moved back from best levels in the wake of the release.

- YM last trades 1.5 tick lower, with XM -2.5. YM/XM trades at 49.5, with the

cash equivalent at 48.5bp. The AU/U.S. 10-Year yield spread trades at -45.9bp.

- Bills traded 1 to 3 ticks lower on the day. RBA repo ops saw A$2.035bn dealt

at 2.032% in a 16-day operation.

- Focus now moves to AU retail sales & trade balance date tomorrow, followed by

the RBA MonPol decision.