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AUSTRALIAN BOND MARKET BEGINS FIRMER - AUGUST 1, 2007.

AsiaPulse News

| August 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, August 1 Asia Pulse - The Australian bond market opened firmer as a second bout of US equity market falls sparked another flight to safe-haven investments.

At 0900 AEST, the yield on the Commonwealth Government February 2017 bond was at 5.975 per cent from yesterday's close of 6.030 per cent, while the August 2010 bond yield was at 6.340 per cent from 6.390 per cent.

The September 10-year bond futures contract was at 94.035, up from yesterday's close of 93.960, while the three-year contract was at 93.650 from 93.610.

Australian bond futures prices rose alongside US Treasury prices overnight, pulling down yields, as risk aversion returned to the market amid more bad news for the US mortgage industry.

Two-year US Treasury yields fell four basis points to 4.54 per cent, while the 10-year yield fell seven basis points to 4.74 per cent.

"Despite a reasonably positive round of data in the US overnight ...

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Source: HighBeam Research, AUSTRALIAN BOND MARKET BEGINS FIRMER - AUGUST 1, 2007.

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