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SYDNEY, June 1 Asia Pulse - The Australian bond market opened weaker today after a major US industrial survey showed stronger than expected results, pushing US Treasury yields higher.
The release of data showing US economic growth was at its weakest in more than four years did not give US Treasury bond prices a boost because, on an annualised basis, expansion is still within market expectations.
At 0900 AEST, the yield on the Commonwealth Government February 2017 bond was at 6.033 per cent from yesterday's close of 6.018 per cent, while the August 2010 bond yield was at 6.230 per cent, from 6.190 per cent.
On the Sydney Futures Exchange, the June 10-year bond futures contract was at 93.965 from yesterday's 93.985, while the three-year contract was at 93.760 from 93.790.
The Chicago purchasing managers' index (PMI) jumped to 61.7 points in May from 52.9 a month earlier.
The survey also showed new orders were at their highest since early 2005.
ING senior portfolio manager of fixed income, Greg Michel, said the Chicago PMI results were the main driver of higher US Treasury yields.