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Aust bonds higher despite positive data

Australian bond futures prices are higher amid a global move toward safe haven assets, despite stronger than expected domestic economic data.

CMC Markets chief market strategist Michael McCarthy said bond futures prices opened higher on Monday, reflecting a rally in safe haven assets on Friday night.

Prices eased off a little during the day, but remained relatively high despite the release of relatively strong domestic housing data.

Housing finance data released by the Australian Bureau of Statistics on Monday showed the number of home loans approved in September rose 0.9 per cent, while the value of home loans rose 3.8 per cent.

"On the face of it, there doesn't seem to be a good reason for bonds to rally on local data," he said.

"So the rally we have seen is in line with what we have seen across the markets on Friday night and across Asia today."

He said demand for local bond futures was likely to remain strong throughout the week.

At 1630 AEDT on Monday, the December 10-year bond futures contract was trading at 97.005 (implying a yield of 2.995 per cent), up from 96.975 (3.025 per cent) on Friday.

The December three-year bond futures contract was at 97.460 (2.540 per cent), up from 97.430 (2.570 per cent).