RSS Feed
May 6th, 2013 
Peter Nolan
AUSTRALIAN bond futures prices are lower after better-than-expected US employment figures boosted sentiment among traders.
US employment data, released on Friday night, showed that 165,000 jobs were added to the world’s largest economy in April, while the unemployment rate fell 0.1 per cent to 7.5 per cent.
Nomura head of fixed income Jon Linton said the figures helped prompt a rally in US stocks while bond prices fell.
“We’ve moved in like with the US (bond market),” he said.
But, Mr Linton said, local bonds would remain well supported and were likely to move higher over the coming months.
He said expectations that the Reserve Bank of Australia would cut the cash rate either at its meeting on Tuesday on in the next few months would see prices rise.
“Any selloff at the moment is an opportunity to buy into the market,” he said.
At 0830 AEST on Monday, the June 10-year bond futures contract was trading at 96.870 (implying a yield of 3.130 per cent), down from 96.960 (3.040 per cent) on Friday afternoon.
The June three-year bond futures contract was at 97.450 (2.550 per cent), down from 97.500 (2.500 per cent).
Posted in 
