The horrific official Chinese PMI......>

AUSSIE BONDS: The horrific official Chinese PMI readings released over the

weekend seem to be the final nail in the coffin re: markets pricing a cut at

tomorrow's RBA decision, with some houses warning of the risk of a 50bp cut (see

earlier bullets). IBs are pricing a ~25% chance of a 50bp cut tomorrow. As a

reminder, Friday saw "we will now all-but certainly get a rate cut from the

Reserve Bank on Tuesday, if not also "other" action." YM +15.0, XM +11.5,

needless to say 3s & 10s have printed fresh record lows in yield terms.

- AiG m'fing PMI sunk to 44.3, while the final CBA reading revealed an

expansionary 50.2 vs. flash 49.8. Although, it is worth noting that CBA stressed

that "the coronavirus outbreak had an adverse impact on supply chains, with many

firms highlighting that the situation had led to material shortages at

distributors that in turn caused delivery delays. Suppliers' delivery times,

lengthened to the greatest extent in the survey history. As such, the gain in

the headline index was primarily lifted by longer delivery times due to supply

shocks rather than any demand-side improvement." Inventories & op profits

headline the local docket, eyes also on Chinese Caixin m'fing PMI.