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AUSTRALIAN BOND MARKET OPENS SOFTER - MARCH 1, 2007.

AsiaPulse News

| March 01, 2007 | COPYRIGHT 2007 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

SYDNEY, March 1 Asia Pulse - The Australian bond market opened slightly softer, following a lead from US Treasuries, as some safe-haven buying reversed and global equities recovered from massive losses.

At 0900 AEDT, the yield on the Commonwealth Government February 2017 bond was at 5.695 per cent from yesterday's close at 5.685 per cent, while the yield on the August 2010 bond was at 5.920 from 5.910 per cent.

On the Sydney Futures Exchange, the March 10-year bond futures contract price was at 94.290 from 94.305 at yesterday's close, while the three-year contract price was at 94.080 from yesterday's close of 94.105.

US bond yields were higher overnight, as some of the safe-haven flows reversed, and on US Federal Reserve chairman Ben Bernanke's upbeat comments on the US economy.

"US overnight data flow appeared to have been lost amidst the noise of the global market correction," ANZ fixed income analyst Patricia Gacis said.

"Bond investors were not on a wholesale bargain-hunting spree."

Investors were warry after the benchmark S&P/ASX200 index fell 2.7 per cent after a sell-off on the Chinese stock exchange sent shockwaves around the globe.

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