Aust bonds open weaker

The Australian bond market has opened weaker, as investors took their cues from a sell-off of US Treasuries during offshore trading.

At 0830 AEST on Thursday, the June 10-year bond futures contract was trading at 96.635 (implying a yield of 3.365 per cent), down from Wednesday's close of 96.715 (3.285 per cent).

The June three-year bond futures contract was at 97.160 (2.840 per cent), down from 97.190 (2.810 per cent) previously.

US Treasuries sold off during the Wall Street session, as the Dow and S&P500 closed at fresh record highs, and Australian bond futures prices followed suit.

The minutes of the US Federal Open Market Committee (FOMC), which showed members continued to debate when to reduce the US central bank's bond purchasing program, also prompted market players to turn away from bonds.

"Treasuries fell as stronger risk appetite dampened demand for safer government bonds," St George Bank said in a research note.

"The FOMC minutes, which said that several members favoured pulling back on bond purchases, may have also weighed on demand."

The focus for markets during the local trading day was expected to be on the March jobs figures from the Australian Bureau of Statistics, due out at 1130 AEST.

Economists expected the nation to have lost 7,500 jobs in the month, with the unemployment rate tipped to remain steady at 5.4 per cent.

Market players would also be looking at any revisions to the previous month's figure, which showed Australia added a surprisingly high 71,000 jobs in February.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9263+0.0001+0.01%
    AUDUSD=X
    0.5513+0.0001+0.01%
    AUDGBP=X
    0.6697+0.0001+0.01%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg