Aust bonds firm as eurozone GDP worsens

The Australian bond market is stronger as the deepening eurozone recession prompts investors to move into the safe haven assets.

At 0830 AEDT on Friday, the March 10-year bond futures contract was trading at 96.480 (implying a yield of 3.520 per cent), up from 96.430 (3.570 per cent) on Thursday.

The March three-year bond futures contract was at 97.140 (2.860 per cent), up from 97.090 (2.910 per cent).

Economic data released on Thursday night, Australian time, showed the eurozone recession was getting worse.

The region's gross domestic product (GDP) fell 0.6 per cent in the December quarter, following a contraction of 0.1 per cent in the previous quarter.

St George economist Janu Chan said bond markets strengthened, led by US Treasuries.

"Sentiment was weighed down by disappointing data which revealed the European economy contracted by more than expected," she said.

"The news drove down European stocks and kept the US share market subdued."

During the local session on Friday, Reserve Bank of Australia assistant governor (economic) Christopher Kent will speak at the Committee for Economic Development of Australia in Perth.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9288-0.0077-0.82%
    AUDUSD=X
    0.5537-0.0029-0.52%
    AUDGBP=X
    0.6724-0.006-0.88%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg