Westpac's 2020 FI trade................>

AUSSIE BONDS: Westpac's 2020 FI trade recommendations include an Aussie

3-/10-Year flattening position, with an entry point of 50bp, target of 25bp and

a stop at 60bp. Westpac write "while there is some near term vulnerability for

the curve to steepen as a result of a February rate cut being priced-in and/or a

positive risk sentiment environment pushing up the long end of the curve, we

think that any such steepening will be short-lived. The RBA will keep rates

anchored for a number of years, there is no inflation and expectations remain

benign. Also, in a low yield, range-trading environment, which we expect to

prevail in 2020, the yield curve will tend to flatten. Especially as Australia

is still well placed globally on a "reward for risk" basis. On top of all that,

our QE expectation is that they will buy across the curve, providing a

flattening influence."