Aust 10yr bonds weaken after US data AUSTRALIAN bond futures prices are slightly lower after official US economic data showed that its trade deficit shrank in June. The trade deficit fell to $US34.2 billion ($A38.42 billion) in June, down from $US44.1 billion in May, the US Commerce Department said. Analysts say the data shows that economic growth for the September quarter could be higher than previously expected and may mean the US Federal Reserve could wind down its stimulus program in the coming months. St George Bank senior economist Josephine Horton said Australian bond futures prices moved in line US Treasuries in offshore trade. "US government bonds yields rose (prices fell) following the release of the trade data," she said. Solid demand at a three-year note auction saw this move reverse almost entirely so that US bonds finished little changed. At 0830 AEST on Wednesday, the September 10-year bond futures contract was trading at 96.270 (implying a yield of 3.730 per cent), down from 96.280 (3.720 per cent) on Tuesday. The September three-year bond futures contract was at 97.440 (2.560 per cent), level with the previous local close. On Wednesday morning, the Australian Bureau of Statistics will release housing finance data for June.