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Aust bonds lower on Chinese trade data

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AAP

2013-02-08

Australian bond futures prices are weaker after the release of Chinese trade data negated an earlier rally.

At 1630 AEDT on Friday, the March 10-year bond futures contract was trading at 96.550 (implying a yield of 3.450 per cent), down from 96.555 (3.445 per cent) on Thursday.

The March three-year bond futures contract was at 97.180 (2.820 per cent), down from 97.190 (2.810 per cent).

RBC Capital fixed income and currency strategist Michael Turner said the local bond futures market rallied slightly on the release of the Reserve Bank of Australia's quarterly Statement on Monetary Policy.

"But we've just drifted off into the afternoon," he said.

"The catalyst was the Chinese trade data, not that there's a particularly strong link given how volatile those data are for January."

Official figures released on Friday showed China's trade surplus rose 7.7 per cent year-on-year in January, helped by a 25 per cent jump in exports.

Mr Turner said prices weren't dramatically differently from where they had been over the past few days.

Things were not likely to change overnight, he said.

"There's not a huge amount that we can see on the calendar tonight that's going to have too much influence," Mr Turner said.

He said the market would be watching for any continued fallout from the European Central Bank's policy meeting.