Australian bonds end Monday firmer
Market watch top headlines
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World reports
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AAP
2009-11-23
The Australian bond market emerged from the early doldrums to see the long end of the market close firmer on Monday, after a quiet start to the week.
The slim gains were concentrated in longer maturities while the short end of the yield curve ended about in line with Friday's closes.
At 1630 AEDT, the yield on the Commonwealth Government March 2019 bond was at 5.366 per cent, down from Friday's close of 5.394 per cent, while the yield on the April 2012 bond was at 4.770, up from 4.761 per cent previously.
On the Sydney Futures Exchange, the December 10-year bond futures contract was at 94.625, up from Friday's close of 95.585, while the December three-year bond futures contract was at 95.130, down from 95.140 previously.
JP Morgan interest rate strategist Sally Auld said a public holiday in Tokyo on Monday had reduced activity in the market, leaving the bond market to trade in small ranges.
And a quiet week lay ahead with Thanksgiving Day in the US.
"It's the Thanksgiving holiday in the US on Thursday so it's going to be very, very quiet," she said.
There is not much market-moving Australian economic data on the calendar barring September quarter private sector capital expenditure figures from the Australian Bureau of Statistics on Thursday, she said.
Ms Auld said she suspected the projections in the capital spending report would turn out to be "pretty good".
"That might pressure yields higher in the short term and that might set the trend as we head into the RBA (Reserve Bank of Australia) board meeting next Tuesday," she said.
