YM settled +4.0, XM +5.0, curve........>

AUSSIE BONDS: YM settled +4.0, XM +5.0, curve flattened into 33.5.

- Aussie bonds ticked higher alongside the broader risk-off flows, related to

the increase in the Coronavirus count aboard a quarantined Japanese ferry, but

that did happen at the same time that the RBA semi-annual testimony was taking

place & SoMP was released.

- RBA Governor Lowe's testimony didn't really move the needle much, sticking to

the recent messaging, while the release of the latest SoMP saw a markdown for

Dec '19 & Jun '20 GDP growth assumptions (as previously flagged), a rosier

outlook re: the unemployment rate further out, and what was a bit of surprise,

in the trimming of Jun '20 headline CPI exp.

- Worth noting that RBA Deputy Gov. Debelle suggested that the impact of recent

easing on house prices & construction may surprise on the upside re: growth &

inflation.

- The latest AOFM issuance schedule failed to have any notable impact on markets

(see earlier bullet for details).

- Local docket is empty on Monday.