Aust bonds open flat

The Australian bond market has opened little changed from levels reached before the Easter long weekend.

At 0830 AEDT on Tuesday, the June 10-year bond futures contract was trading at 96.575 (implying a yield of 3.425 per cent), broadly unchanged from Thursday's local close of 96.570 (3.430 per cent).

The June three-year bond futures contract was at 97.120 (2.880 per cent), compared with 97.130 (2.870 per cent) previously.

The flat start on the local bond market, which was closed on Good Friday and Easter Monday, mirrored the performance of US Treasuries during Monday night's (AEDT) offshore session.

"US Treasuries were broadly unchanged despite the weaker-than-expected US ISM manufacturing data," ANZ said in a research note.

"Yields were also broadly unchanged since before the Easter break."

The focus for markets on Tuesday is expected to be on the Reserve Bank of Australia interest rate decision due at 1430 AEDT.

Interest rate futures were putting the prospect of an interest rate cut at nine per cent.

All 13 economists surveyed by AAP before Easter were tipping no change to the cash rate, which currently sits at three per cent.

The latest survey of the local manufacturing sector from the Australian Industry Group is also due for release.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9269-0.0018-0.20%
    AUDUSD=X
    0.5518-0.0017-0.30%
    AUDGBP=X
    0.6704-0.0017-0.25%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg