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

AUSSIE BONDS: Aussie Bonds stuck to a tight range in SYCOM dealing and continue

to operate around SYCOM closing levels, in the upper end of the recent range.

The domestic 3-/10-Year yield differential & AU/US 10-Year yield spread continue

to operate around familiar levels. 10-Year Bond futures' hesitation ahead of YtD

highs is a concern for bulls given daily studies correcting from overbought

levels, daily momentum divergence and Bollinger tops lingering above. Bulls need

a close above 97.440 to confirm a break of the 100-WMA (97.3760) and initially

target 97.500-520. Bears look for a close below 97.335 to ease bullish pressure.

- 3-Month BBSW fixed 1.8bp lower, a 5th consecutive lower fixing, as FY end

pressures alleviate. This will please the RBA, after it noted that "short-term

wholesale interest rates have increased over recent months. This is partly due

to developments in the U.S., but there are other factors at work as well. It

remains to be seen the extent to which these factors persist." The white & red

Bill contracts last deal unch. - 1 tick higher.

- The major point on today's domestic docket comes in the form of a speech from

the RBA's Heath, at the Urban Development Institute of Australia.