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Aust bonds weaker in quiet trade

The Australian bond market is slightly weaker after a quiet night of trade, with US bond markets closed for the Veterans' Day public holiday.

St George senior economist Janu Chan said Australian bond futures prices had slipped a little lower in overnight trade.

"There was little direction in equity markets given Veterans Day in the US. Shares in Europe were higher, on positive earnings results.

"US bond markets were closed, while yields on Australian bond futures were marginally higher."

The key focus for markets on Thursday will be the release of Australian employment figures for October.

The unemployment rate is expected to stay steady at 6.2 per cent and the number of Australians with a job is forecast to have risen by 15,000 in the month.

At 0830 AEDT on Thursday, the December 2015 10-year bond futures contract was trading at 97.075 (implying a yield of 2.925 per cent), down from 97.100 (2.900 per cent) on Wednesday.

The December 2015 three-year bond futures contract was at 97.940 (2.060 per cent), down from 97.970 (2.030 per cent).


Government bond yields:

* CGS 5.5pct Jan 2018, 1.989pct, unchanged from Wednesday's local close

* CGS 4.25pct April 2026, 2.932pct, unchanged

Sydney Futures Exchange prices:

* December 2015 bill futures, 97.850, from 97.840

* March 2016 bill futures, 97.930, unchanged

(*Closes taken at 1630 AEDT previous local session)

Source: IRESS