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. The key

excerpt was "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."

- Bonds now trade at best levels. YM last +3.5 ticks, with XM -0.5 tick. YM/XM

trades at 47.5, with the cash equivalent at 43.0bp. The AU/U.S. 10-Year yield

spread trades at -66.8bp. Bills trade 2 to 4 ticks higher through the reds.

- Paying in IBK9 was noted post-RBA.

- Focus now moves to the budget, due this evening (Sydney time).