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Aust bonds prices open higher

Australian 10-year bond futures prices are higher after earlier weakness in US stocks boosted demand for fixed income assets.

JP Morgan interest rate strategist Sally Auld said local bond futures prices moved higher overnight as US Treasury yields fell.

She said demand for fixed income assets was boosted by earlier weakness in US stock markets.

But, she said, a recovery in New York's S&P 500 later in the overnight session saw local futures prices weaken from their earlier highs.

"There was a bit of a risk-off theme overnight, but we've softened a bit on those gains (in the S&P 500)," she said.

Ms Auld said it was likely to be a quiet day for the local market as traders await key domestic employment figures on Thursday and inflation data next week.

At 0830 AEDT on Wednesday, the March 10-year bond futures contract was trading at 96.600 (implying a yield of 3.400 per cent), up from Tuesday's local close of 96.575 (3.425 per cent).

The March three-year bond futures contract was at 97.190 (2.810 per cent), unchanged from Tuesday.