Aust bonds slightly firmer

Australian bond futures prices are slightly higher following a weak lead from US Treasuries, which were broadly unchanged on Friday.

At 1630 AEDT on Monday, the March 10-year bond futures contract was trading at 96.555 (implying a yield of 3.445 per cent), up from 96.550 (3.450 per cent) on Friday.

The March three-year bond futures contract was at 97.190 (2.810 per cent), up from 97.180 (2.820 per cent).

UBS interest rate strategist Matthew Johnson said the rally that bond futures prices have enjoyed is likely to end.

"Bonds had a good rally all across last week and it looks like it'll meet a little bit of resistance at the levels that we are at the moment.

"My guess is that in a fairly light data week we might see a bit of selling pressure evolve."

Mr Johnson said it also was likely to be a quiet week for the Australian bond market because of the Chinese New Year public holidays across Asia.

Locally, on Monday, the Australian Bureau of Statistics is due to release housing finance figures for December.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9273-0.0092-0.99%
    AUDUSD=X
    0.5523-0.0043-0.78%
    AUDGBP=X
    0.6703-0.0081-1.19%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg