The space was initially indecisive.....>

AUSSIE BONDS: The space was initially indecisive on the back of the latest RBA

MonPol decision, which saw the Bank leave its cash rate unchanged, as exp. A bid

then developed on the back of the tweaks to the summary paragraph, which now

reads "the low level of interest rates is continuing to support the Australian

economy. Further progress in reducing unemployment and having inflation return

to target is expected, although this progress is likely to be gradual. Taking

account of the available information, the Board judged that it was appropriate

to hold the stance of policy unchanged at this meeting. The Board will continue

to monitor developments and set monetary policy to support sustainable growth in

the economy and achieve the inflation target over time." Elsewhere the Bank

tipped its cap to the softer than exp. Q4 data & recent developments in global

mkts. On h'hold consumption the RBA pointed to a "protracted period of weakness

in real household disposable income & the adjustment in housing markets."

- YM last +0.5 tick, with XM -2.5 ticks. YM/XM trades at 46.5, with the cash

equivalent at 42.0bp. The AU/U.S. 10-Year yield spread trades at -65.2bp. Bills

trade unchanged to 1 tick higher through the reds.