Aussie shares hit three-week high as bond yields drop

Xero was dragging down the tech sector as the cloud accounting company missed earnings expectations. (Dan Himbrechts/AAP PHOTOS)

The local share market has finished above a key level for the first time since falling below it three weeks ago as bond yields continue to fall.

The benchmark S&P/ASX200 index on Thursday rose 19.5 points, or 0.28 per cent, to 7,034.1, its first close above 7,000 since October 18.