Bonds mixed ahead of jobs data

Australian bond futures prices are mixed, and showing little movement ahead of monthly labour force data.

At 0830 AEDT on Thursday, the December 10-year bond futures contract was at 96.910 (implying a yield of 3.090 per cent), up from 96.900 (3.100 per cent) on Wednesday afternoon.

The December three-year bond futures contract was trading at 97.370 (2.630 per cent), down from 97.380 (2.620 per cent).

RBC Capital Markets fixed-income strategist Michael Turner said there was not much happening on bond markets ahead of November job figures, due out on Thursday.

"Bonds are pretty flat right now," he said.

"(US) Treasuries rallied slightly in the overnight session, and that dragged us up slightly.

"We had a speech by Reserve Bank of Australia deputy governor Philip Lowe last night, but that didn't give us much information, but it wasn't hawkish, so that might have helped the market a bit."

With domestic labour force data due for release, Mr Turner said the market was looking for information about the general state of the economy, and signs of possible future rate cuts - however, a weaker number was already priced in.

"We've had a few good months, so the market's braced for a softer number today," he said.

"So there might not be a huge reaction."

An AAP survey of 14 economists showed the median expecting unemployment to rise to 5.5 per cent in November, from 5.4 per cent in October.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9327-0.0005-0.05%
    AUDUSD=X
    0.5555-0.0003-0.05%
    AUDGBP=X
    0.6753-0.0003-0.05%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg