Bonds stronger after previous selloffs
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Australian bond futures prices have risen strongly, as the market adjusts after earlier weakness.
At 1630 AEDT on Wednesday, the December 10-year bond futures contract was at 96.865 (implying a yield of 3.135 per cent), up from 96.785 (3.215 per cent), on Tuesday.
The December three-year bond futures contract was trading at 97.330 (2.670 per cent), up from 97.270 (2.730 per cent).
Nomura rates strategist Martin Whetton said there was no specific data or international news driving prices higher.
"The rally is not due to international conditions, because nothing happened overnight," he said.
"I just think we reached a trading level that was sufficiently low, and now the market wants to turn it around.
"It's sold off around 25 basis points over the last 10 days."
Crucial data - including capital expenditure numbers - would guide the market in coming days, Mr Whetton said.
"If the capex number suggests that there is no slowing down in expenditure, then everyone's who's thinking the RBA (Reserve Bank of Australia) will cut next week will probably pare those expectations back," he said.
Markets are pricing a 50-50 chance that the RBA will ease rates when it meets on Tuesday.
The bank left the cash rate on-hold at 3.25 per cent at its November 6 meeting, after cutting in May, June and October.