Aust bond futures strengthen further AUSTRALIAN bond futures are stronger after international markets reacted to news domestic retail spending declined for the third consecutive month. Figures released by the Australian Bureau of Statistics on Wednesday showed retail trade fell 0.2 per cent in December, its third monthly decline. The figure was below market expectations of a 0.3 per cent rise. UBS interest rate strategist Matthew Johnson said bond futures prices rose following the release of the data and the move continued overnight. "It was bid after the retail sales data and the market has just gone on with it," he said. Mr Johnson said the key local event on Thursday would be the 1130 AEDT release of domestic employment figures for January. "Obviously, the jobs report will give us a lot of information about how the economy was travelling in January and that will be instrumental in where we go from here," he said. At 0830 AEDT on Thursday, the March 10-year bond futures contract was trading at 96.540 (implying a yield of 3.460 per cent), up from 96.500 (implying a yield of 3.500 per cent) on Tuesday. The March three-year bond futures contract was at 97.190 (2.810 per cent), up from 97.160 (2.840 per cent).