YM & XM both sit 2.0 ticks higher on...>

AUSSIE BONDS: YM & XM both sit 2.0 ticks higher on the day. YM/XM deals at 40.5

ticks, with the cash equivalent at 35.9bp.

- Bills trade unchanged to 2 ticks higher through the reds.

- RBA Governor Lowe's speech during SYCOM hours did little to change the broader

feel of the RBA's statement that accompanied yesterday's 25bp cut, as the

Governor reiterated that the Bank will cut rates further if it deems such a move

appropriate. The phrase used was "given the circumstances, the Board is prepared

to adjust interest rates again if needed to get us closer to full employment and

achieve the inflation target in a way that supports the collective welfare of

all Australians."

- In terms of the pass-through, ANZ were the only one of the Big 4 to pass the

cut on to mortgage customers in full (this comes after they only passed on 18bp

of last month's cut).

- Building approvals and trade data headline the domestic docket today, while

the AOFM will open its book for the new FY and offer A$800mn worth of the June

2031 ACGB.