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AAP

2012-11-08

Australian bond futures prices have risen after Barack Obama was returned as US president, and data showed no change in the national unemployment rate.

At 1630 AEDT on Thursday, the December 10-year bond futures contract was trading at 96.925 (implying a yield of 3.075 per cent), up from 96.885 (3.115 per cent) on Wednesday.

The December three-year bond futures contract was at 97.390 (2.610 per cent), up from 97.350 (2.650 per cent).

RBC fixed income strategist Michael Turner said global bond markets strengthened after the US election, as investors focused on the economic challenges facing Mr Obama.

"We rallied a lot overnight - we were up by nine basis points this morning," he said.

"Then we had another rise after the employment data today, but we've fallen back more recently."

Official data released on Thursday showed Australia's unemployment rate remaining steady at 5.4 per cent in October, with moderate job growth of 10,700 for the month.

Mr Turner said global factors would again be the focus overnight.

"We have a Bank of England decision overnight - consensus believes there will be no change in their stimulus plan," he said.

"Then there's an ECB (European Central Bank) decision after that.

"We expect the market will then return to negotiations around how the US fiscal cliff is to be resolved."

Automatic federal spending cuts and tax increases - known collectively as the fiscal cliff - will start in January, and threaten to push the US economy back into recession.

Obama is now tasked with starting talks with leaders in Congress to resolve the issue.