Aust bonds firmer after trade data
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Australian 10-year bond futures prices have moved slightly higher after official figures showed the country recorded its biggest trade deficit since 2008 in November.
Commonwealth Bank interest rate strategist Phillip Brown said it had been a quiet day of trading on the futures market, though the release of monthly trade figures at 1130 AEDT may have helped pushed futures prices higher.
"It (the trade figures) isn't one that tends to move the market too much but it is does actually give you a pretty good read on the Australian economy.
"There was only a very small rally, one or two basis points and its hard to even say if that caused it."
Figures released by the Australian Bureau of Statistics showed the trade deficit widened to $2.637 billion in November, the biggest deficit since March 2008.
Mr Brown said the release of monthly building approvals for November on Thursday would be of interest to bond traders, given the focus the Reserve Bank of Australia has placed on the data in recent months.
"The RBA has been talking about the fact that we need other parts of the market to take over from mining investment once that starts to slow, and one of the candidates for that is housing construction," he said.
"So I'm more curious than normal to see the building approvals."
At 1630 AEDT on Tuesday, the March 10-year bond futures contract was trading at 96.600 (implying a yield of 3.400 per cent), up from 96.585 (3.415 per cent) on Monday afternoon.
The March three-year bond futures contract was at 97.170 (2.830 per cent), the same level as on Monday.