AUSTRALIAN BOND MARKET OPENS LOWER - OCT 1, 2008.

SYDNEY, Oct 1 Asia Pulse - The Australian bond market has opened weaker after US equity markets bounced back strongly from yesterday's savage decline and US Treasuries sold off.

At 0830 AEST, the yield on the Commonwealth Government March 2019 bond was at 5.453 per cent, up from yesterday's close of 5.383 per cent, while the June 2011 bond was at 5.140 per cent, up from 5.080 per cent.

On the Sydney Futures Exchange, the December 10-year bond futures contract was at 94.555, down from yesterday's close of 94.610, while the December three-year contract was at 94.860, down from yesterday's close of 94.930.

Investors returned to equity markets in a big way last night on fresh optimism the US government's Troubled Asset Relief Program (TARP) would be approved by the House of Representatives, which rejected the package yesterday.

US president George Bush again stressed the importance of passing the government's US$700 billion (A$879.78 billion) rescue plan for financial firms.

"The reality is that we are in an urgent situation, and the consequences will grow worse each day if we do not act," Mr Bush said.

National Australia Bank head of research Peter Jolly said renewed hope the TARP would be passed by the US Congress caused US Treasuries to sell off.