The space was well bid in early........>

AUSSIE BONDS: The space was well bid in early Sydney dealing, benefitting from

the risk-off backdrop that we have outlined elsewhere. However, the bid waned as

we moved through the session, with little in the way of fresh catalysts for

further extension for now, as the latest round of RBA re-pricing was limited,

owing to the RBA's self-confessed ELB at 0.25%. The BoJ's liquidity pledge,

coupled with an upbeat Caixion m'fing sector outlook sub-index (despite woeful

headlines for the survey itself & official PMI data) were also touted as sources

of pressure as risk rebounded as we moved through the Asia-Pac session. That

left YM +5.0 and XM +1.5 come the close, with roughly 26bp worth of easing

priced into IBs for tomorrow's RBA decision as I type. Various houses have

outlined outside chances of a 50 cut at tomorrow's RBA decision.

- Local data provided little impetus for the space, as it remained focused on

the broader ebbs & flows evident in the session. Also worth flagging on the semi

front, SAFA has noted that it has no intention of accessing term markets in

March, stepping back from the issuance table amid an expected uptick in vol.

- The RBA decision headlines tomorrow's local docket.