Australian bonds remain flat tracking U.S. Treasuries; investors eye RBA policy decision next week

The Australian bonds traded flat on the last day of the week, tracking similar movement in the U.S. Treasuries. Also, investors remained sidelined in any major trading activity ahead of the Reserve Bank of Australia’s (RBA) monetary policy meeting, scheduled to be held on April 4 for further direction in the debt market.  

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 2.70 percent, the yield on 15-year note traded flat at 3.08 percent and the yield on short-term 2-year also remained steady at 1.76 percent by 05:10 GMT.

After three straight weeks of falls, consumer confidence rose 1.6 percent in the week ending March 26. The four week average continued to fall, however, and is now back to early 2016 levels and close to its long run average.

The pickup in confidence was broadly based with four out five sub-indices posting gains. Households’ views of the 12-month economic outlook rose 2.7 percent last week, after a 3.3 percent fall the previous week. Consumers were also more confident regarding future economic conditions, with the index rising a solid 2.8 percent.

Meanwhile, the ASX 200 index traded 0.63 percent down at 5,850.50 by 05:10GMT, while at 05:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 102.47 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex