Australian bonds rebound as investors look forward to Governor Lowe’s speech, March trade balance

The Australian government bonds rebounded Wednesday as investors await the Reserve Bank of Australia (RBA) Governor Philip Lowe’s speech, scheduled to be held on May 4, besides the country’s trade balance data for the month of March, due on the same day.  

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 1-1/2 basis points to 2.60 percent, the yield on 15-year note also rose a little over 1 basis point to 3.02 percent and the yield on short-term 2-year traded 1-1/2 basis points lower at 1.68 percent by 04:50 GMT.

The RBA, at its monetary policy meeting held yesterday, kept the benchmark cash rate at a record low 1.5 percent as widely expected, but noting the housing market presents challenges to policy. All 65 economists polled by Reuters predicted the central bank would maintain the cash rate at 1.5 percent at Tuesday's meeting.

"Conditions in the housing market continue to vary considerably around the country," Governor Philip Lowe said in a statement.

Meanwhile, the ASX 200 index traded 1.07 percent down at 5,865.50 by 05:10GMT, while at 05:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -42.68 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex