Australian 10-year bond yields hit 1-week low after U.S. President Trump ends TPP deal

The Australian 10-year bond yields hit 1-week low Tuesday after the United States President Donald Trump ended the long-standing 12-nation Trans-Pacific Partnership (TPP) trade deal with its Asian allies on Monday despite rising influence from China in the region.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped nearly 6 basis points to 2.71 percent, the yield on 15-year note also plunged 6 basis points to 3.15 percent and the yield on short-term 2-year fell 4 basis points to 1.84 percent by 05:00 GMT.

Besides, the TPP deal, which was signed by his predecessor Barrack Obama, Trump added that he is going to seek one-on-one trade deals with Asian countries to boost U.S. manufacturing. He also said the deals he will sign will allow the country to quickly terminate them within 30 days if somebody misbehaves or misuses them.

Further, U.S. Treasury Secretary nominee Steven Mnuchin has told senators that he would work to combat currency manipulation but would not give a clear answer on whether he currently views China as manipulating its yuan, Reuters reported, citing a Senate Finance Committee document.

Lastly, investors are now looking forward to the release of consumer and producer prices, due on Wednesday and Thursday respectively for detailed direction in the debt market.

Meawhile, the ASX200 index traded 0.22 percent up at 5,596.50 percent at 05:20GMT, while at 5:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -97.73 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex ​