The space is meandering around the.....>

AUSSIE BONDS: The space is meandering around the SYCOM closing levels ahead of

today's RBA MonPol decision, with the domestic 3-/10-Year yield differential &

AU/US 10-Year spread continuing to operate around familiar levels.

- All of those surveyed expect the RBA to leave its cash rate unchanged at 1.5%,

so focus will fall on the Bank's rhetoric used in the statement. CPI and wage

growth remain subdued. The last decision saw the RBA introduce risks around

Italy, some EM economies and tighter domestic lending standards, while the

minutes of that meeting removed the reference to the greater likelihood of the

next move in the cash rate being up as opposed to down.

- Dovish risks include the RBA giving a greater acknowledgement of global trade

war risks and increased worry regarding housing prices and the knock on effects

for consumption.

- SAFA launched the heavily touted "upto A$1bn" of new syndicated May 2028

Bonds.

- Repo rates eased again today as short end pressures alleviate after the turn

of the FY. The white & red Bill contracts last trade unchanged to a tick softer.