The main bond futures trade around.....>

AUSSIE BONDS: The main bond futures trade around unchanged levels after drawing

support from Terry McCrann's latest article during SFE hours. McCrann wrote

"after playing the waiting game for almost three years, the Reserve Bank is

going to cut interest rates to a record low in 18 days." OIS price a 67% chance

of a cut at next month's RBA decision.

- YM last +0.5 tick, XM -1.0 tick. YM/XM trades at 48.5 ticks, with the cash

equivalent at 45.4bp.

- Bills trade 2 ticks higher to 1 tick lower through the reds, with the

front-end outperforming.

- Focus now moves to this weekend's federal election. The ruling coalition has

narrowed the gap in the polls over recent months, but the majority of polls that

we have seen have the opposition Labour Party winning by a small margin,

typically polling between 51-52% on a 2-party basis.

- The AOFM's weekly issuance schedule provides the highlight of the domestic

docket today.