The Australian 10-year bond yields slumped to over 6-week low Thursday, tracking firmness in U.S. Treasuries amid lack of clarity by the United States President-elect Donald Trump in his press conference on Wednesday. Also, markets are now looking forward to a host of speeches from the Federal Open Market Committee (FOMC) members later in the day.
In intraday trading, the 10-yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell more than 6 basis points to 2.68 percent, the yield on 15-year note plunged 10 basis points to 3.11 percent and the yield on short-term 2-year moved down 5 basis points to 1.83 percent.
The Australian bonds have been closely following movements in the U.S. debt market. The U.S. benchmark 10-year bond yields fell 6 basis points to 2.33 percent, from yesterday’s high of 2.39 percent.
Moreover, Donald Trump in his public appearance said that he is handling over his personal businesses to his son to avoid future discrepancies. Regarding a relationship with Russia, he claimed that association with Vladimir Putin is an asset, rather than a liability.
Lastly, market participants will also be awaiting the Australian labor market data, scheduled for release next week for further direction in the debt maket.
Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.08 percent lower at 5,766.90 by 05:40 GMT, while at 5:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 111.13 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
