Bond futures stuck to a tight range....>

AUSSIE BONDS: Bond futures stuck to a tight range on SYCOM, with the U.S. Labor

Day holiday having a notable effect on activity.

- The domestic 3-/10-Year yield differential continues to trade either side of

54bp, with the AU/U.S. 10-Year yield spread last dealing at ~-35.5bp.

- The Bill strip last trades unchanged to a tick lower.

- The RBA MonPol decision & a speech from Gov. Lowe provide the headline risk

events today, with GDP input data also due. The RBA will almost certainly leave

its cash rate on hold at 1.50%. The Bank is unlikely to be swayed by domestic

political uncertainty and the risk of wider mortgage rate rises, instead

focusing on econ. data, including a dip in the unemp. rate, in effect

maintaining its glass half full approach. Chances are that the Bank will

reiterate that the next move in the cash rate will likely be up in both the

minutes from the meeting & Lowe's speech. Last month's SoMP gave the RBA the

chance to update its econ. forecasts, with no large deviations from the prior

outlook apparent.