Three-year bond futures slightly firmer
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Australian three-year bond futures prices are slightly higher after failing to react to the US Federal Reserve chairman's indication that he was open to the idea of more economic stimulus.
US Fed chairman Ben Bernanke made the comment in testimony to a Congressional committee on Tuesday night, Australian time.
Nomura rates strategist Martin Whetton said it was a very quiet day for the bond market with prices trading in a tight range.
"We haven't had too much of a move," he said.
"There was nothing out of the Fed last night that changed things, we've had a very steady session."
Mr Whetton said most of the movements were in shorter-term bonds such as three-year bonds and bond futures.
At 1630 AEST on Wednesday, the September three-year bond futures contract was at 97.770 (implying a yield of 2.230 per cent), slightly up from 97.760 (2.240 per cent) on Tuesday.
The September 10-year bond futures contract was trading at 97.175 (2.825 per cent), where it finished the previous local session .
Mr Whetton said the bond market was awaiting the National Australia Bank March quarter business survey, due on Thursday morning.
He said it would be interesting after the Reserve Bank of Australia said the economy in the past few months was performing better than had been previously thought and local consumer spending was starting to improve.
"The NAB business confidence survey, which is a very good quality survey, may reveal that not just consumers but business intentions are looking a little bit more positive," Mr Whetton said.