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AUSTRALIAN BONDS OPEN STEADY - APRIL 2, 2007.

AsiaPulse News

| April 02, 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, April 2 Asia Pulse - Australian bonds opened little changed as worries of a China-US trade war neutralised higher than expected US inflation data.

At 0900 AEST, the yield on the Commonwealth Government February 2017 bond was unchanged at 5.888 per cent from Friday's close, while the yield on the August 2010 bond was at 6.160 from 6.150 per cent.

On the Sydney Futures Exchange, the June 10-year bond futures contract price was at 94.120 from Friday's close of 94.125, while the three-year contract price was unchanged at 93.860.

Pressure is expected to mount on the Australian bond market in the run up to the Reserve Bank of Australia (RBA) interest rate decision this week.

Even if the RBA keeps rates steady this month, recent data pointing to strong household consumption and borrowing are prompting many dealers to expect a rise in May, Grange Securities director Stephen Roberts said.

"Even if there is no rate increase this week, market speculation is likely to shift to a May rate increase," Mr Roberts said.

"As a result, any ...

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Source: HighBeam Research, AUSTRALIAN BONDS OPEN STEADY - APRIL 2, 2007.

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