Bonds down on global moves

Australian bond prices have followed other markets down at the end of the week.

At 0830 AEDT on Friday, the March 10-year bond futures contract was trading at 96.715 (implying a yield of 3.285 per cent),down from Thursday's close of 96.750 (3.250 per cent).

The March three-year bond futures contract was at 97.290 (implying a yield of 2.710 per cent), down from 97.330 (2.670 per cent).

Nomura rates strategist Martin Whetton said it was global market movements which weakened bond prices in Australia overnight.

"Our bond prices fell in-line with other markets," he said.

"US Treasuries are off, so we're off. There was no local activity or data which explains the move."

Mr Whetton said he expected Friday to be a quiet day, with little to influence the market.

"We have nothing coming up today, except the AOFM (Australian Office of Financial Management) announcing its bond issuance," he said.

On Thursday afternoon, Australian bond prices rose, despite an optimistic report for Chinese manufacturing.

HSBC's purchasing managers' index (PMI) rose to 51.9 in January, from 51.5 in December, showing that manufacturing activity is improving.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9261-0.0027-0.29%
    AUDUSD=X
    0.5512-0.0022-0.40%
    AUDGBP=X
    0.6696-0.0025-0.37%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg