The space has stuck to a tight range...>

AUSSIE BONDS: The space has stuck to a tight range in SFE dealing, with 3-Year

Bond futures last trading 0.5 tick lower at 97.775, while 10-Year Bond futures

trade 0.5 tick higher at 97.220.

- The RBA left its cash rate unchanged at 1.50% as was expected. The Bank

reiterated that it believes inflation is likely to remain low for some time. On

the wages front the Reserve Bank reiterated that wage growth appears to have

troughed. In terms of economic growth, the central bank suggested that GDP

growth will average a bit above 3.0% in 2018 & 2019, this was perhaps the most

notable takeaway after there was some chatter that the RBA would downgrade its

growth outlook to < 3.0%. Bonds lost a tick post-RBA.

- The domestic 3-/10-Year yield differential is 1.4bp flatter at 56.9bp, as it

continues to back away from last week's recent highs, while the AU/US 10-Year

yield spread trades virtually unchanged at -19.7bp. 3-Month BBSW fixed 1bp lower

today, at 2.025%. This has supported the front end of the Bill strip, with the

white & red contracts trading unchanged to 2 tick lower post-RBA.

- Markets now await a speech from RBA Gov Lowe later today & Friday's SoMP.