YM & XM -3.5, with YM/XM at 23.0 &.....>

AUSSIE BONDS: YM & XM -3.5, with YM/XM at 23.0 & the cash equivalent at 20.9bp.

- RBA Dep. Gov. Debelle suggested that the floor for rates in Australia is

likely 0.0-0.5% in a Q&A session after a speech. Debelle also noted that if

rates got down to "around 0.5%" then the bank would have to consider "other

options." Debelle's comments were not surprising given the recent commentary

from RBA Governor Lowe & the release of the mins from the RBA's August MonPol

decision. Although the Bank prev. suggested that unconventional MonPol in

Australia is an unlikely outcome at present, and that a package of measures

tends to be more effective than any single unorthodox measure in isolation.

- Debelle touched on currency transmission in several instances, unsurprisingly

given that the topic of his speech was "A Balance of payments." In the Q&A he

noted that the A$ has "come down some" and "may well go down further". He

suggested that a further fall in the A$ would be "helpful."

- Bills deal 1-4 ticks lower through the reds.

- Q2 Capex gets the quarterly GDP inputs underway tomorrow, with 2030 supply

also due.