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AUSTRALIAN BONDS END FIRMER - JULY 2, 2007.

AsiaPulse News

| July 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, July 2 Asia Pulse - The Australian bond market has closed firmer after a drop in US consumer spending and four failed car bomb attacks in the United Kingdom prompted a wave of safe haven buying.

At 1630 AEST, the yield on the Commonwealth Government February 2017 bond was at 6.245 per cent compared with Friday's close of 6.258 per cent, while the August 2010 bond yield was at 6.412 per cent from 6.410 per cent.

The September 10-year bond futures contract was at 93.800 from Friday's close of 93.740, while the three-year contract was at 93.570 from 93.530.

Deutsche Bank bond trader Andrew Bryan said the local bond market was following a rise in demand in the global bond market amid the return of some geo-political risk following the failed car bomb attacks in London and Galsgow.

Two cars were found packed with combustible materials and nails in London on Friday night, while two men drove a fuel-laden jeep into a Glasgow airport building on Saturday afternoon.

Mr Bryan said figures showing US inflation remained under control were also attracting buyers to the bond ...

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Source: HighBeam Research, AUSTRALIAN BONDS END FIRMER - JULY 2, 2007.

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