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Aust bonds firm ahead of US elections

Australian bond futures prices are higher as traders play it safe ahead of the US presidential election.

At 0830 AEDT on Tuesday, the December 10-year bond futures contract was trading at 96.955 (implying a yield of 3.045 per cent), up from 96.920 (3.080 per cent) on Monday.

The December three-year bond futures contract was at 97.430 (2.570 per cent), up from 97.420 (2.580 per cent).

ANZ head of interest rate research Tony Morriss said Australian bond futures had firmed in line with US Treasury bonds ahead of the US presidential election.

The election result is likely to be announced on Wednesday, Australian time.

"We saw a bit of support for US Treasuries ahead of their election, the stock market was fairly weak," Mr Morriss said.

"It's pretty quiet overall. We're just in a holding pattern ahead of the US election."

The market is also awaiting the Reserve Bank of Australia's Novermber board meeting and interest rate decision.

Mr Morriss said ANZ expected the cash rate to be kept at 3.25 per cent after the RBA's meeting on Tuesday.

"We still see the case for some modest easing down the road," he said.

"If they do move, the bond market will shift up today."