Australian bonds rebound post Trump’s protectionist Inaugural talks

The Australian government bonds rebounded Monday post the protectionist speech delivered by the United States President Donald Trump on Friday in his Inaugural ceremony. However, market expectations of a higher consumer price inflation data, scheduled to be released on January 25 limited the fall in bond yields.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2 basis points to 2.76 percent, the yield on 15-year note also plunged 2 basis points to 3.21 percent and the yield on short-term 2-year slid 1-1/2 basis points to 1.88 percent by 04:50 GMT.

In his much anticipated inauguration speech, President Trump largely focused on the main principle that won him the election: a strong anti-establishment message and putting America above all else.

"Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs," ANZ reported, citing Trump’s original speech.

He further added that protectionism will lead to great prosperity and strength and that he will fight for it thoroughly, putting his country on the top priority every time.

Meawhile, the ASX200 index traded 1.36 percent down at 5,561.00 percent at 05:10GMT, while at 5:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 48.13 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex