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AAP

2012-11-26

Australian bond futures prices are higher on global equity and bond market movements.

At 1630 AEDT on Monday, the December 10-year bond futures contract was at 96.815 (implying a yield of 3.185 per cent), up from 96.780 (2.220 per cent), on Friday.

The December three-year bond futures contract was trading at 97.290 (2.710 per cent), up from 97.260 (2.740 per cent).

Deutsche Bank bond trader Andrew Bryan said bond markets were slightly higher but trading in a subdued manner ahead of a summit of European finance ministers later on Monday (European time).

"There's very little going on in markets," he said.

"Equities are weaker, US Treasuries are slightly stronger, and we're following that.

"There seems to be a holding back of trading activity until the market gets news of Greece receiving its next aid package."

Finance ministers are meeting in Brussels to decide on the delivery of a 30 billion euros ($A37.5 billion) bailout package for Greece.

Mr Bryan said investors were also concerned about the Spanish elections and the US fiscal cliff.

He said bond prices would continue to be guided by offshore events this week, although domestic capital expenditure data on Wednesday could have some influence.

"That data will reveal something about capex intentions for next year," he said.

"That ties directly into the outlook for the mining sector and the need for other sectors of the economy to pick up where mining might leave off."

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