YM trades 2.5 ticks lower, with XM.....>

AUSSIE BONDS: YM trades 2.5 ticks lower, with XM 2.0 ticks lower at writing,

both are just off worst levels, with YM/XM at 48.5 ticks and the cash equivalent

at 44.7bp.

- Chinese GDP & economic activity data provided some fresh pressure in the

second half of the SFE session, after fairly limited trade early on.

- The latest AOFM tender (for ACGB 2.75% 21 May 2041) received average demand at

best, although follow through was limited. It wasn't the strongest auction when

looking at the cover ratio; the line's longer duration and lower amount in

circulation may have limited total bids. Although, it looks like the average

yield was 0.11bp below mid at the time of supply, so it was by no means an awful

auction all told.

- Bills trade unchanged to 2.0 ticks lower on the day. RBA repo operations saw

A$833mn worth of 11-day repo operations dealt at an average of 1.301%, with

A$1.435bn worth of 37-day ops dealt at an average of 1.289%.

- Focus returns to domestic matters tomorrow, with the minutes of the RBA's July

MonPol decision due.