Australian bond futures prices are lower as strong retail sales and building approvals data make it unlikely the Reserve Bank of Australia will further reduce the cash rate.
Australian retail spending rose 0.7 per cent to $22.459 billion in November, the seventh consecutive month of growth, while building approvals data showed a sharp rise in the number of approvals for detached houses.
The strong figures saw a sell-off on the Australian bond market, CMC Markets chief market strategist Michael McCarthy said.
"It's been the very conservative consumer that's been one of the planks that's kept growth so subdued," Mr McCarthy said.
"We know that household balance sheets have been well-repaired and if consumers are now coming out of their spending shells, that's good news for the economy and bad news for bonds.
"While we expect the RBA will retain its easing bias, the potential for another rate cut is receding and today's numbers pointed to that. I expect that's why we're seeing this sell-off."
At 1630 AEDT on Thursday, the March 10-year bond futures contract was trading at 95.730 (implying a yield of 4.270 per cent), down from 95.745 (4.255 per cent) on Wednesday.
The March three-year bond futures contract was at 96.900 (3.100 per cent), down from 96.960 (3.040 per cent).