Bonds to trade tight range before Fed meeting

German Bunds opened little changed on Tuesday ahead of the U.S. central bank's policy meeting which could result in some form of stimulus measures to boost the faltering world's biggest economy.

At 0607 GMT, the September Bund future <FGBLc1> was up four ticks at 130.07. The two-year Schatz yield <DE2YT=TWEB> was down 0.5 basis points at 0.725 percent.

Bunds were expected to trade a tight range of 130.00 to 130.10 ahead of the Federal Reserve's policy decision at around 1815 GMT.

"We have seen toppy trading in the past few sessions as we near the Fed's meeting and conceivably today we will just hold a tight 10-tick range like we did for hours on end yesterday. There is little to stimulate a break out of that range until the Fed meeting is out of the way," said a dealer in London.

On Monday, Bund futures came close to retesting Friday's record high after weaker-than-expected U.S. non-farm payrolls raised speculation the Federal Reserve may announce fresh measures such as buying bonds to help the economy.