Australian bonds gain ahead of RBA November meeting minutes, Governor Lowe speech

Australian bonds gained on Monday as investors remained cautious ahead of the Reserve Bank of Australia (RBA) minutes for the November monetary policy meeting.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 2 basis points to 2.564 percent, the yield on the long-term 30-year note dipped 1 basis point to 3.346 percent and the yield on short-term 2-year declined 1 basis point to 1.784 percent by 02:20 GMT.

Looking at the week ahead, there are no obvious catalysts for the Aussie domestically with a quiet schedule on the data calendar. Markets will keep an eye on the RBA’s minutes from its November meeting tomorrow at 00:30 GMT. There’s also a speech from RBA governor Philip Lowe tomorrow evening titled “Some Evolving Questions”.

Looking abroad, the minutes from the US Fed’s most recent meeting on interest rates will be released on Wednesday night, before US markets are closed for the Thanksgiving holiday on Thursday. Later in the week, there’s October data for manufacturing and services PMIs across the US, Europe and Japan.

In the United States, Treasuries saw a mixed performance to finish off the week on Friday as the downward pressure in the short-end was contrasted by modest gains further out the curve.

Meanwhile, the S&P/ASX 200 index traded 0.27 percent higher at 5,955.5 by 02:20 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index highly bearish at -113.15 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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