Aust bonds rebound after selloff
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Australian bond futures prices are higher, after recovering some of the ground lost in the selloff of safe-haven assets that followed the US budget deal.
Nomura head of fixed income Jon Linton said the local bond market had been relatively flat for most Thursday, following Wedneday's selloff.
"It really hasn't moved much at all," Mr Linton said.
Australian bond futures sold off on Wednesday after the US Congress passed legislation preventing a so-called "fiscal cliff" of tax hikes and spending cuts due to come into effect this week.
Global bond markets, including US Treasuries, also sold off on Wednesday night (AEDT), while stock markets rallied.
Mr Linton said the market was waiting for direction from offshore markets, especially the US, during the overnight session.
"There isn't much happening locally so I think our market is really in hands of global markets," Mr Linton said.
"We will wait and see what the US does."
At 1630 AEDT on Thursday, the March 10-year bond futures contract was trading at 96.665 (implying a yield of 3.335 per cent), up from 96.615 (3.385 per cent) on Wednesday.
The March three-year bond futures contract was at 97.230 (2.770 per cent), up from 97.200 (2.800 per cent) previously.