The RBA delivered the widely...........>

AUSSIE BONDS: The RBA delivered the widely expected 25bp cut today. After a bit

a bit of post-RBA chop (with a knee jerk lower presumably on the continued

reference to the economy reaching a general turning point and maybe a hint of

positioning) the space has managed to tick higher, with the RBA maintaining an

easing bias, sounding a little more downbeat on the labour market and probably a

little more circumspect on consumer spending.

- The Bank tilted its cap to the broader global monetary easing cycle in its

communique, with a continued focus on the labour market evident in its address.

The reference to full employment in the final paragraph is indicative of the

RBA's problem. 4.5% unemployment is a long way off!

- YM +4.5 XM +2.5 vs. settlement leaving YM/XM at 32.5 and the cash equivalent

at 29.7bp.

- Bills now trade 4-6 ticks higher on the day, with the front end of the strip

outperforming.

- Focus moves to RBA Governor Lowe's evening address.