The space had no lasting reaction to...>

AUSSIE BONDS: The space had no lasting reaction to the RBA's latest SoMP,

knee-jerking slightly higher on the back of the cut in the 2019 GDP expectations

before re-focusing on global issues. In terms of the MonPol outlook, the Bank

revealed little new, placing even more focus on the labour market as it noted

that "at its recent meeting, the Board focused on the implications of the low

inflation outcomes for the economic outlook. It concluded that the ongoing

subdued rate of inflation suggests that a lower rate of unemployment is

achievable while also having inflation consistent with the target. Given this

assessment, the Board will be paying close attention to developments in the

labour market at its upcoming meetings." The combination of no outright easing

bias being adopted by the RBA & broader flows surrounding U.S.-China trade

matters allowed the space to trade back from the highs as people looked to

rumours of a Trump-Xi phone call for hope, before the risk-off flows came back

into play ahead of the formal imposition of the increased tariffs played out.

- YM last +0.5 tick tick, with XM -1.0 ticks. YM/XM at 47.5 ticks, with the cash

equivalent at 44.1bp. Bills trade unchanged to 1.0 tick higher through the reds.