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AUSTRALIAN BONDS OPEN FIRMER - APRIL 1, 2008.

AsiaPulse News

| April 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, April 1 Asia Pulse - Australian bonds opened marginally firmer as US treasuries rallied overnight, with local eyes waiting for the central bank's announcement on interest rates this afternoon.

At 0830 AEDT, the yield on the Commonwealth Government February 2017 bond was at 6.023 per cent, down from yesterday's close of 6.042 per cent, while the August 2010 bond was at 6.170 per cent, down from yesterday's close of 6.240.

On the Sydney Futures Exchange, the June 10-year bond futures contract price was at 93.985, up from yesterday's close of 93.940, while the June three-year contract price was at 93.885, up from yesterday's close of 93.840.

Citigroup director of economics Stephen Halmarick said the focus of today would be the RBA's announcement at 1430 AEDT.

"The big question today is, `Does the Reserve Bank retain a tightening bias?'" he said

"And how strong is that bias given what's been happening in global markets?

"The market has (factored in) no further rate price hike in the next few months."

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Source: HighBeam Research, AUSTRALIAN BONDS OPEN FIRMER - APRIL 1, 2008.

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