Aussie bonds weaken after 2037 bonds sold
Australian bond futures prices are weaker after the federal government sold bonds with the longest ever maturity date.
Yields rose in the afternoon after the Australian Office of Financial Management announced it had sold $7 billion of a new line of April 21, 2037 Treasury bonds.
"The 2037 bond is the longest one ever issued so it's a significant amount of risk injected into the bond market," Commonwealth Bank head of debt research Adam Donaldson said.
"As the day has worn on, actually we've seen some selling emerge into the close."
Earlier, the local bond market reacted to global debt and equity market volatility instead of to a Westpac/Melbourne Institute consumer sentiment report showing pessimists in October outnumbering optimists for the eighth month in a row, he added.
At 1630 AEDT on Wednesday, the December 2014 10-year bond futures contract was trading at 96.630 (implying a yield of 3.370 per cent), down from 96.660 (3.340 per cent) on Tuesday.
The December 2014 three-year bond futures contract was at 97.370 (2.630 per cent), down from 97.430 (2.570 per cent).
