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STOCKS - AUSTRALIAN BONDS OPEN STRONGER - MARCH 3, 2008.

AsiaPulse News

| March 03, 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, March 3 Asia Pulse - The Australian bond market opened stronger this morning, tracking US Treasuries, which rallied on Friday night after fresh fears the US will head into recession.

At 0830 AEDT, the yield on the Commonwealth Government February 2017 bond was at 6.135 per cent, down from Friday's close of 6.210 per cent, while the August 2010 bond was at 6.597 per cent, down from Friday's close of 6.685.

On the Sydney Futures Exchange, the March 10-year bond futures contract price was at 93.800, up from Friday's close of 93.755, while the December three-year contract price was at 93.445, up from the previous close of 93.365.

Citigroup managing director of economics Stephen Halmarick said the continued credit market concerns helped push bond yields lower.

"It was more the worries about ongoing stress in the financial system," Mr Halmarick said today.

"That just continued the flight-to-quality rally in bonds.

"That's dragged Aussie bonds yields lower, but we've underperformed the US and the spread's widened."

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