Bonds down after RBA rate cut
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Australian bond futures prices are lower following the Reserve Bank of Australia's decision to cut interest rates.
At 1630 AEDT on Tuesday, the December 10-year bond futures contract was at 96.900 (implying a yield of 3.100 per cent), down from 96.935 (3.065 per cent) on Monday afternoon.
The December three-year bond futures contract was trading at 97.380 (2.620 per cent), down from 97.420 (2.580 per cent).
On Tuesday the RBA cut the cash rate by 0.25 per cent to three per cent.
Westpac interest rate strategist Tim Jung said high market expectations of a rate cut meant the market didn't react as strongly to the announcement as expected.
"It was a little surprising," he said.
"It makes us think that perhaps there were some people out there who were actually looking more for a 50 basis cut."
Bond futures prices fell following the RBA's announcement, but recovered slightly throughout the afternoon.
Mr Jung said the release of official Australian unemployment figures on Thursday would be a major focus for traders and was likely to provide a boost for bond futures prices.