Tight ranges for the futures...........>

AUSSIE BONDS: Tight ranges for the futures contracts in early Sydney dealing,

with XM holding in the lower end of the SYCOM trading range, after U.S. Tsy

flows drove some curve steepening in futures overnight.

- That allowed the contract to unwind yesterday's supply driven bump away from

lows, with the curve steepening a touch. YM -0.5 last, XM -3.0.

- Bills 1-2 ticks lower through the red. Surplus cash balances on ES accounts

continue to pare back from the recent record levels, with the cash rate fixing

unchanged at 0.14%.

- CBA's flash PMI readings were downright dreadful as we noted earlier (for some

light details see earlier bullet on the matter), although market has looked

through this, given the somewhat predictable nature of the releases. Elsewhere,

the latest monthly trade balance print will hit later today.