Australian bonds have opened largely unchanged after Germany's parliament passed a crucial vote to increase its contribution to the European bailout fund, aimed at avoiding a eurozone recession.
Of 611 German MPs present, 523 voted in favour, meaning that Germany in the future will be guaranteeing loans to the bailout fund, the so-called European Financial Stability Facility, or EFSF, of up to 211 billion euros ($A294.57 billion) rather than 123 billion euros so far.
CMC chief market strategist Michael McCarthy said traders were becoming less pessimistic on the chance of an imminent European recession.
"At one stage (earlier this week), we were pricing in an extreme scenario.
"We're now pulling back from those extremes on slightly better news."
At 0830 (AEST), on Friday, the December 10-year bond futures contract was trading at 95.710 (implying a yield of 4.290 per cent), up marginally from 95.715 (4.285 per cent) on Thursday.
The December three-year bond futures contract was at 96.340 (3.660 per cent), down from 96.360 (3.640 per cent).
US Labor Department figures released overnight showed that country's jobless claims fell sharply last week to 391,000 - the lowest level since April.
The previous week's new claims for unemployment insurance, a measure of the pace of business and government layoffs, was 428,000.
Meanwhile, the Commerce Department said the US economy grew at an annual rate of 1.3 per cent in the April-June quarter, up from an estimate of 1.0 per cent made a month ago.
"The data out of the US suggests that the situation in terms of the US economy is not as bad as we feared," Mr McCarthy said.
At 0900 (AEST), federal Treasurer Wayne Swan reported that the final budget outcome for 2010/11 was an underlying deficit of $47.7 billion.
That's a modest improvement on the $49.4 billion deficit forecast in the May budget.
Mr Swan told reporters that global uncertainty will have an impact on domestic growth and revenues.
Source: http://news.smh.com.au
Of 611 German MPs present, 523 voted in favour, meaning that Germany in the future will be guaranteeing loans to the bailout fund, the so-called European Financial Stability Facility, or EFSF, of up to 211 billion euros ($A294.57 billion) rather than 123 billion euros so far.
CMC chief market strategist Michael McCarthy said traders were becoming less pessimistic on the chance of an imminent European recession.
"At one stage (earlier this week), we were pricing in an extreme scenario.
"We're now pulling back from those extremes on slightly better news."
At 0830 (AEST), on Friday, the December 10-year bond futures contract was trading at 95.710 (implying a yield of 4.290 per cent), up marginally from 95.715 (4.285 per cent) on Thursday.
The December three-year bond futures contract was at 96.340 (3.660 per cent), down from 96.360 (3.640 per cent).
US Labor Department figures released overnight showed that country's jobless claims fell sharply last week to 391,000 - the lowest level since April.
The previous week's new claims for unemployment insurance, a measure of the pace of business and government layoffs, was 428,000.
Meanwhile, the Commerce Department said the US economy grew at an annual rate of 1.3 per cent in the April-June quarter, up from an estimate of 1.0 per cent made a month ago.
"The data out of the US suggests that the situation in terms of the US economy is not as bad as we feared," Mr McCarthy said.
At 0900 (AEST), federal Treasurer Wayne Swan reported that the final budget outcome for 2010/11 was an underlying deficit of $47.7 billion.
That's a modest improvement on the $49.4 billion deficit forecast in the May budget.
Mr Swan told reporters that global uncertainty will have an impact on domestic growth and revenues.
Source: http://news.smh.com.au
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