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AUSTRALIAN BOND MARKET OPENS WEAKER - FEB 1, 2008.

AsiaPulse News

| February 01, 2008 | COPYRIGHT 2008 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, Feb 1 Asia Pulse - The Australian bond market opened weaker today, tracking US Treasuries which found support early in the overnight session before reversing course as equities rallied.

At 0830 AEDT, the yield on the Commonwealth Government February 2017 bond was at 6.105 per cent, up from yesterday's close of 6.093 per cent, while the August 2010 bond was at 6.608 per cent, down slightly from 6.610 per cent.

On the Sydney Futures Exchange, the March 10-year bond futures contract price was at 93.900, down from yesterday's close of 93.920, while the December three-year contract price was at 93.465, down from yesterday's close of 93.470.

Bonds were initially bid overnight as some soft US economic data and rumours a number of major US bond insurers were set to lose their top credit ratings boosted safe-haven flows.

The US Commerce Department reported that spending edged up just 0.2 per cent in December - the year's peak shopping season - down sharply from a one per cent gain in November.

Meanwhile, the number of US workers filing new claims for jobless aid jumped by a much ...

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