Aust bonds close firmer as mart hangs on to gains

Business, Normal
Source:

The National, Monday 25th March 2013

 SYDNEY: Australian bonds have closed firmer, with the market hanging on to gains from overnight trading during a quiet local session.

Bonds futures prices rose in overnight offshore trading (AEDT), following some disappointing manufacturing data from Europe and after the European Central Bank set a deadline of Tuesday for Cyprus to agree to a rescue plan.

Following the positive start, local bonds traded in a tight range during last Friday’s Australian session, with little to offer investors by way of direction.

At 1630 AEDT last Friday, the June 10-year bond futures contract was at 96.435 (implying a yield of 3.565%), up from last Thursday’s local close of 96.405 (3.595%).

The June three-year bond futures contract was at 97.000 (3%), up from 96.960 (3.040%) previously.

Commonwealth Bank interest rate strategist Phillip Brown said market players were looking ahead to the decision of the Cypriot government on the EU’s rescue plan. –AAP