Futures settle around pre-release......>

AUSSIE BONDS: Futures settle around pre-release levels. YM last -1.0 tick, with

XM -0.5 tick.

- Little notable reaction to the RBA cut, which was fully priced. Spaced

actually ticked lower on the decision/statement.

- This comes after the Bank fails to commit to further cuts, but such an

indication may be given in RBA Governor Lowe's evening speech in Sydney (as we

highlighted beforehand).

- To summarise the RBA's concluding paragraph noted that "today's decision to

lower the cash rate will help make further inroads into the spare capacity in

the economy. It will assist with faster progress in reducing unemployment and

achieve more assured progress towards the inflation target. The Board will

continue to monitor developments in the labour market closely and adjust

monetary policy to support sustainable growth in the economy and the achievement

of the inflation target over time."