Aust bonds stronger on quiet day
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SYDNEY, Feb 11 AAP
February 11 2013, 4:39PM
Australian bond futures are stronger, following a quiet day of trading due to Chinese New Year celebrations.
At 1630 AEDT on Monday, the March 10-year bond futures contract was trading at 96.580 (implying a yield of 3.420 per cent), up from 96.550 (3.450 per cent) on Friday.
The March three-year bond futures contract was at 97.230 (2.770 per cent), up from 97.180 (2.820 per cent).
JP Morgan interest rate strategist Sally Auld said it had been a quiet day of trading, with Asian markets closed due to Chinese New Year public holidays.
She said weakness on local stock markets and the release of weaker-than-expected housing finance figures for December, helped push bond prices higher.
"It's been a very, very quiet day so what has happened has happened on very thin volumes," Ms Auld said.
"We did rally a bit, that might have been because of the softer tone to equities but the data was obviously a bit softer as well."
Figures released by the Australian Bureau of Statistics on Monday showed the number of home loans taken out in December fell 1.5 per cent, compared to the previous month.
Ms Auld said the local market was likely to remain relatively quiet for the rest of the week.