Australia Markets closed

Aust Bond prices move higher

Australian bond futures prices are higher as traders move back into the market following recent sell-offs.

Westpac senior market strategist Damien McColough said they moved higher on Friday night as investors took advantage of lower prices following the recent sell-off.

"Late last week, we started seeing signs of a bit of demand coming back into the market after having had a bit of a sell-off over the past seven to 10 days," he said.

Mr McColough said the local market would be driven primarily by events in the US this week, including a speech on Monday night (Australian time) by US Federal Reserve chairman Dr Ben Bernanke.

"There's not a lot of domestic drivers today, but I think the real focus is on the US with their earnings season and Bernanke speaking."

At 0830 AEDT, the March 10-year bond futures contract was trading at 96.570 (implying a yield of 3.430 per cent), up from Thursday's local close of 96.545 (implying a yield of 3.455 per cent).

The March three-year bond futures contract was at 97.170 (2.830 per cent), up from 97.140 (2.860 per cent) previously.