Trade war related headlines drove......>

AUSSIE BONDS: Trade war related headlines drove the space. YM closed -3.5, XM

-8.0, XM briefly showed below its SYCOM lows, with YM/XM settling at 41.5

- The RBA's SoMP revealed a downgrade to the Bank's near-term growth profile, a

slightly longer exp. re: the time frame for a return to 2% underlying CPI, based

on the overview (but it actually peaks at 1.9% Y/Y over the forecast horizon if

you look at the decimal estimates further in the SoMP) & a now steady 2.3% wage

growth profile. Easing bias remained (noting "time to assess the effects of the

recent easing of monpol as well as global developments"), discussion of -ves of

easing in Oct also seen (Board was mindful rates already very low & that each

further cut brings closer the point at which other policy options might come

into play. It also took into a/c the possibility that further easing could

unintentionally convey an overly -ve view of the econ outlook, or that the usual

channels of pol transmission might be less effective at low interest rates").

- Next week's AOFM weekly issuance schedule is busy, see bullet for details.

Elsewhere, SAFA hired banks for a tap of its 2.75% 2030 line & Macquarie

University launched a new 25-Year A$ line with yield guidance of 3.10%.