Weak iron ore price boosts Aust bonds November 19, 2014 - 5:00PM Australian bond futures prices are higher as sharp falls in the iron ore price spark concerns about Australia's economic outlook. UBS interest rate strategist Andrew Lilley said further falls in iron ore has markets questioning whether Australia will be able to manage its transition from mining-led income growth to non-mining income growth. The iron ore price would typically have started to rise around this time of year, he said. "The fact that the iron ore price is still falling has bond markets concerned about whether Australia will be able to weather the storm," Mr Lilley said. Markets are now reassessing the likelihood that the Reserve Bank could hike rates next year. At 1630 AEDT on Wednesday, the December 2014 10-year bond futures contract was trading at 96.705 (implying a yield of 3.295 per cent), up from 96.690 (3.310 per cent) on Tuesday. The December 2014 three-year bond futures contract was at 97.430 (2.570 per cent), up from 97.410 (2.590 per cent).