Australian bond yields recover from previous lows following short-selling

Australian bond yields recovered from previous lows during Asian session Tuesday as investors engaged in short-selling amid a muted trading session that witnessed data of little economic significance.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped nearly 2-1/2 basis points to 2.458 percent, the yield on the long-term 30-year bond also rose closely by 2-1/2 basis points to 2.990 percent and the yield on short-term 2-year traded 1 basis point higher at 1.951 percent by 04:00GMT.

Australia’s business conditions fell again in November, with weakness widespread across industries and regions, although from an upwardly-revised October outcome. The net result left conditions at the lowest level since November 2016.

Further, ANZ-Roy Morgan consumer confidence fell 1.5 percent, reversing the gains seen over the previous two weeks. Consumer sentiment remains well above its long-run average, however.

Nevertheless, the risk-off tone in markets continues. Anxiety over US-China trade uncertainty and Fed policy weighed again. Adding to that, the meaningful vote on the Brexit withdrawal agreement has been delayed because it would have been heavily defeated.

Meanwhile, the S&P/ASX 200 index traded 0.31 percent lower at 5,556.00 by 04:05GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 3.35 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex