The Australian government bonds traded narrowly mixed Tuesday, succumbing to thin trading activity during a relatively quiet session that witnessed data of little significance. Also, we foresee that the debt market will remain volatile ahead of the Reserve Bank of Australia (RBA) monetary policy meeting scheduled next week.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1-1/2 basis points to 2.012 percent, the yield on long-term 15-year note remained steady at 2.377 percent and the yield on short-term 2-year rise 1/2 basis point to 1.614 percent by 04:30 GMT.
The Reserve Bank of Australia will hold its monetary policy meeting next week on October 4, announcing its decision at 03:30 GMT. We foresee that the central bank will remain concerned about persistently low inflation, but the strong housing market will keep policy on hold.
In term of recent economic data, Australia’s ANZ / Roy Morgan Consumer Confidence Index, for the week ended September 25 rose to 120.6, from 115.5 the previous week.
Moreover, the Australian bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Reserve Bank of Australia's target. The crude oil prices tumbled as investors took profits after prices climbed more than 3 percent in the previous session. The International benchmark Brent futures fell 0.23 percent to $47.82 and West Texas Intermediate (WTI) dipped 0.09 percent to $45.89 by 04:40 GMT.
Lastly, investors will also remain keen to focus on the upcoming OPEC informal meeting this week in Algiers. It is uncertain that a deal can be reached on freezing or cutting output.
Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.25 percent higher to 5,388.5 by 04:40 GMT.


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