Aust bond futures strong ahead of FOMC December 16, 2013 - 4:57PM Australian bond futures prices have jumped, despite the increased likelihood that the US Federal Reserve could begin tapering its economic stimulus program this week. Stronger-than-expected data out of the US recently, including employment and retail sales figures, as well as last week's proposed US budget deal, have increased the likelihood that tapering could begin this year. That should drive bond prices lower but instead, Australian bond futures prices rallied on Monday, UBS interest rate strategist Matthew Johnson said. "All the press on the Fed seems to be that the possibility of a tapering this week is reasonable and Aussie futures have rallied despite that," Mr Johnson said. There's been no obvious catalyst for today's buying but there's clearly a buyer in the market. At 1630 AEDT on Monday, the March 10-year bond futures contract was at 95.815 (implying a yield of 4.185 per cent), up from 95.715 (4.285 per cent) on Friday. The March three-year bond futures contract was at 97.035 (2.965 per cent), up from 96.965 (3.035 per cent).