Aussie Bonds have stuck to a tight.....>

AUSSIE BONDS: Aussie Bonds have stuck to a tight range but ticked away from the

SYCOM session highs ahead of today's RBA SoMP. expectations look for both the

headline and underlying inflation forecasts for June 2020 to be maintained at

2.25% but there's a small chance exp. may be raised to 2.5%. The RBA may discuss

the likely (and unlikely) impact of the higher funding costs on mortgage and

business lending rates, as well as on deposit rates. The discussion on spare

capacity in the economy beyond the labour market, including the Bank's view on

non-mining investment, will be eyed, as will the RBA's characterisation of the

risks from the slowing housing market.

- 3-Year Bond futures trade 1.5 ticks higher at 97.780, while 10-Year Bond

futures trade 4.0 ticks higher at 97.215. Benchmark 3-Year paper yields 2.177%,

while 10-Year benchmark paper yields 2.771%. The domestic 3-/10-Year yield

differential last trades 2.4bp flatter at 58.8bp.

- Cash Tsys are closed in Asia-Pacific hours owing to a Japanese holiday, which

could limit Aussie Bonds. The white & red bill contracts are a tick lower, after

3-Month BBSW fixed unchanged.