The space has witnessed a small bid....>

AUSSIE BONDS: The space has witnessed a small bid on the back of a dovish

statement form the RBNZ, as the Bank left its OCR unchanged at 1.75%. The Bank

now believes that "given the weaker global economic outlook & reduced momentum

in domestic spending, the more likely direction of our next OCR move is down," a

pivot from the Bank's previous view that "the direction of our next OCR move

could be up or down." The Bank highlighted "domestic growth slowed in '18, with

softness in the housing market & weak business investment contributing." It also

tipped its hat to the need for fiscal spending to support growth, alongside

ongoing low interest rates. In terms of its overall assessment the RBNZ noted

"the balance of risks to this outlook has shifted to the downside. The risk of a

more pronounced global downturn has increased, and low business sentiment

continues to weigh on domestic spending. On the upside, inflation could rise

faster if firms pass on cost increases to prices to a greater extent."

- YM trades +2.0 ticks, with XM +4.5 ticks at writing. YM/XM trades at 41.0,

with the cash equivalent at 36.5bp. The AU/U.S. 10-Year yield spread trades at

-64.4bp. Bills trade unch. to 3 ticks higher through the reds at writing.