The space was subjected to a bout of...>

AUSSIE BONDS: The space was subjected to a bout of heavy selling ahead of

yesterday's SFE close (on decent volume), with little in the way of clear

reasoning apparent, outside of forced business into month/quarter/FY end and

maybe a relatively thin bid to hit.

- Futures then stuck to a tight range on SYCOM, and have witnessed a very

limited start to SFE trade ahead of today's RBA MonPol decision. As a reminder,

the majority of analysts are looking for a 25bp cut, while the IB strip prices

an ~80% chance of such a move. Please use the following link to access our

extensive preview of the decision:

- https://emedia.marketnews.com/RBA_Preview_Oct_2019.pdf

- YM last +0.5 with XM also +0.5.

- Bills sit unchanged to 1.0 tick higher on the day.

- In terms of semi-issuance, we have learnt that SAFA has no intention to access

term markets in the coming month.

- Outside of the RBA decision, RBA Governor Lowe will make an address later in

the day, with CoreLogic House price data & building approvals also due.