Aust bonds unchanged after GDP data
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Australian bond futures prices are unchanged after quarterly economic data showed national economic growth had slowed.
Data released by the Australian Bureau of Statistics on Wednesday showed Australian gross domestic product (GDP) grew 0.5 per cent in the three months to September, well below its long-term quarterly average of 0.8 per cent.
Bond prices fell slightly after the release of the GDP figures but finished the day unchanged from market close on Tuesday.
JP Morgan interest rate strategist Sally Auld said the slight fall may have been attributed to market expectations of weaker GDP growth.
"I don't know whether people were a little bit nervous about the prospect of a soft number but as it turned out it was an okay number," she told AAP on Wednesday.
She said the market would trade in a similar price range on Thursday.
"It doesn't look overly exciting in one direction or another," she said.
Ms Auld said the market has been waiting for developments in negotiations between US politicians trying to avoid the so called fiscal cliff of tax hikes and spending cuts due to apply automatically in 2013.
"I think everyone's focus is really on the fiscal cliff and the probability of whether that gets resolved or not as we head towards Christmas."
At 1630 AEDT on Wednesday, the December 10-year bond futures contract was at 96.900 (3.100 per cent), unchanged from Tuesday afternoon.
The December three-year bond futures contract was trading at 97.380 (2.620 per cent), the same level as on Tuesday.