The space slipped on the back of the...>

AUSSIE BONDS: The space slipped on the back of the RBA MonPol decision, as the

Bank left its cash rate unch. at 1.50%. The Bank stuck to its glass half full

approach & there was a lack of fresh dovish rhetoric, with some of the comments

positive at the margin. The Bank didn't change its language re: mortgage rates,

despite the recent hike from Westpac or acknowledge the latest round of

political upheaval. The Bank noted that the econ. likely grew at an above trend

rate in H118. The Bank also reiterated that the outlook for the labour market

remains +ve & that there should be a further lift in wages growth over time,

after a little pick up recently, owing to reports of skills shortages in some

areas & high vacancy rate, with a further gradual decline in unemployment still

exp. The domestic 3-/10-Year yield differential has flattened a touch on the

back of the release, as 3-Year paper underperformed, while the AU/U.S. 10-Year

yield spread moved back to unch. ~-34.5bp. 

- The Bill strip followed Bonds, last unch. to 3 ticks lower.

- Focus now turns to an address from RBA Gov. Lowe later today, with exp. that

he will reiterate that the next move in the cash rate will likely be up.