YM closed +3.0, XM +4.0, both shy of...>

AUSSIE BONDS: YM closed +3.0, XM +4.0, both shy of highs, YM/XM closed at 40.0.

- Domestic matters put a fresh bid into the space in the Sydney morning after

the RBA's Nov meeting minutes noted that "the Board agreed that a case could be

made to ease MonPol at this meeting, but that the most appropriate approach

would be to maintain the current stance of MonPol and to make another full

assessment once more evidence of the effects of the earlier monetary easing had

become available." However, the Board also cautioned that "they also discussed

the possibility that a further reduction in interest rates could have a

different effect on confidence than in the past, when interest rates were at

higher levels." These worries were likely limited, given the fact that the Bank

was happy to point to the 'usual' transmission mechanisms, although the warning

was still there. As a reminder, RBA Governor Lowe will speak on "Unconventional

Monetary Policy: Some Lessons from Overseas" in a weeks' time.

- Bills finished the session 2-4 ticks higher through the reds.

- re: corporate flow: Qantas launched a new 10-Year A$ note, NextEra launched a

7-Year Green Kangaroo line & Ford mandated for possible A$ bond issuance.