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AUSTRALIAN BOND MARKET OPENS WEAKER - DEC 1, 2008.

AsiaPulse News

| December 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, Dec 1 Asia Pulse - The Australian bond market opened weaker after the strongest weekly rally on Wall Street since 1974 dampened demand for debt assets.

Local bonds are expected to trade within a tight range on Monday as investors await the Reserve Bank of Australia's (RBA) monthly board meeting on Tuesday.

At 0830 AEDT, the yield on the Commonwealth Government March 2019 bond was at 4.568 per cent, down from Friday's close of 4.615 per cent, while the yield on the June 2011 bond was at 3.560 per cent, down from 3.588 per cent.

On the Sydney Futures Exchange, the December 10-year bond futures contract price was at 95.395, down from Friday's close of 95.410, while the December three-year contract price was at 96.385, down from 96.400.

Australian futures contract prices declined, a sign of a weaker bond market, as New York's S&P 500 index rose 8.56 points, or 0.96 per cent, on Friday night to 896.24.

It finished the week 12 per cent firmer, the biggest weekly gain since October 1974.

ICAP senior economist Adam Carr ...

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