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Australian bond futures rally to two-year high

Sydney, Aug 2 (Newswire): Australian debt futures rallied on Tuesday after the Reserve Bank of Australia (RBA) kept interest rates unchanged and sounded less certain about the global economic outlook.

The three-year bond futures rose as high as 95.750, up 0.25 points on the day, reaching highs not seen since July 2009. Interbank futures also rose strongly as some in the market again priced in the chance of an interest rate cut.

The move was encouraged by big losses in Asian stocks as worries about the health of the global economy mounted following Monday's sluggish manufacturing data.
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