Aust bonds weaker after RBA minutes
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Australian bond futures are weaker following the release of the minutes of the Reserve Bank of Australia's February 5 board meeting.
At 1630 AEDT on Tuesday, the March 10-year bond futures contract was trading at 96.440 (implying a yield of 3.560 per cent), down from 96.445 (3.555 per cent) on Monday.
The March three-year bond futures contract was at 97.090 (2.910 per cent), down from 97.080 (2.920 per cent).
RBC Capital Markets fixed interest strategist Michael Turner said bond futures weakened following the release of the minutes of the RBA's February board meeting.
"We were a little bit heavy heading into that and then sold of a bit afterwards," he said.
"And since then it's been a bit of a steady grind higher."
The minutes indicated the RBA would wait to see the effects of recent interest rate cuts before it decides to cut again.
It cut the cash rate 1.75 percentage points between November 2011 and December 2012 but kept rates on hold at 3.0 per cent in February.
Mr Turner said bond futures were likely to trade in a narrow range over the next few days as the market waited for RBA governor Glenn Stevens' half yearly appearance before a federal parliamentary economic committee on Friday.