Australian bonds gain following firm U.S. Treasuries as Fed Chair successor uncertainty looms

The Australian bonds gained Tuesday following firmness in U.S. Treasuries as investors remained cautious ahead of the fresh triggers for trades from President Donald Trump's pending decision on the leadership of the Federal Reserve. The U.S. 10-year treasury yield fell more than 1 basis point to 2.321 percent.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 3 basis points to 2.82 percent, the yield on the 15-year note dipped 2-1/2 basis points to 3.10 percent and the yield on short-term 2-year traded 2-1/2 basis points higher at 1.95 percent by 02:00GMT.

Fed Chair Janet Yellen will speak at the Community Banking in the 21st Century Conference on Wednesday amid growing speculation concerning her position as Fed Chair. Fed Governor Jerome Powell and former Fed Governor Kevin Warsh are reportedly on a shortlist of candidates to succeed Janet Yellen.

The markets also remain focused on the upcoming retail sales data, scheduled to be released on Thursday at 00:30 GMT. It is expected to rise 0.3 percent in August, after remaining flat in July.

Meanwhile, the S&P/ASX 200 index fell 0.53 percent to 5,639.50 by 02:10 GMT, while at 02:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 138.16 (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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