Aust bonds weaker after strong US data August 6, 2013 - 9:14AM Australian bond futures prices are slightly lower after the release of good services sector data from the US ended a bond market rally. An Institute for Supply Management Activity report, released overnight, showed that activity in the US services sector grew solidly in July, helped by a jump in business activity and new orders. ANZ head of interest rate research Tony Morriss said bond futures prices were rising ahead of an expected interest rate cut by the Reserve Bank of Australia on Tuesday, but the data ended the rally. "The market rallied pretty strongly yesterday until we got that stronger data from the US last night," he said. The RBA is widely expected to cut the cash rate by quarter of a percentage point to a new record low of 2.5 per cent after low June quarter inflation figures were reported on July 24. There is some speculation there could be a 50 basis point move (half a percentage point). We think the case for that is pretty weak," Mr Morriss said. At 0830 AEST on Tuesday, the September 10-year bond futures contract was trading at 96.340 (implying a yield of 3.660 per cent), down from 96.390 (3.610 per cent) on Monday. The September three-year bond futures contract was at 97.510 (2.490 per cent), down from 97.530 (2.470 per cent).