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Bonds unchanged ahead of US data

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AAP

2013-01-30

Australian bond futures marked time in a quiet market, ahead of key economic events in the US.

At 1630 on Wednesday, the March 10-year bond futures contract was trading at 96.520 (implying a yield of 3.480 per cent), down from Tuesday's local close of 96.525 (3.475 per cent).

The March three-year bond futures contract was unchanged at at 97.130 (2.880 per cent).

Commonwealth Bank head of debt research Adam Donaldson said the Aussie bond market was looking at overseas events to drive them.

"In the near term we think it'll be trends in the US, which we think will be critical for where our market sits," he said.

"The way a lot of data has been printing, and risk appetite has been improving, we wouldn't be surprised to see yields kicking up a bit in the near term."

The focus will be the US Federal Open Market Committee meeting on Wednesday night, with markets waiting for any news of how the Fed will progress with its bond-buying program.

Gross domestic product data for the US will also be released on Wednesday, followed by key employment figures on Friday.