Aust bonds weaker as optimism returns

The Australian bond market have opened weaker as a new bout of optimism about the global economy emerges.

At 0830 AEDT on Wednesday, the March 10-year bond futures contract was trading at 96.530 (implying a yield of 3.470 per cent), down from 96.570 (3.430 per cent) on Tuesday.

The March three-year bond futures contract was at 97.190 (2.810 per cent), down from 97.220 (2.780 per cent).

CMC Markets chief market strategist Michael McCarthy said risk assets such as commodities and base metals prices rose overnight.

"We've seen further strength in oil, copper has bounced back and shares are generally more positive," he said.

"There is a view that the growth that is coming back into the global economy means that stimulus is likely to be wound down sooner rather than later and that is not supportive of safe-haven assets like bonds."

The G20, meeting in Moscow on Thursday and Friday, is expected to make a statement on countries that push down the value of their currencies to encourage economic growth.

"Clearly, markets will be looking for signs that the competitive devaluations that are driving currency markets will be pulled back but we're not expecting any strong indications," Mr McCarthy said.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9366+0.0008+0.08%
    AUDUSD=X
    0.5573-0.0024-0.42%
    AUDGBP=X
    0.6770-0.0006-0.09%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg