The Australian government bonds slumped during Asian session Friday as investors wait to watch the Reserve Bank of Australia’s (RBA) monetary policy decision, scheduled to be held by early next week. Also, markets remain volatile amid the ongoing geopolitical and trade tensions.
The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, jumped nearly 3 basis points to 2.69 percent, the yield on the long-term 30-year Note rose nearly 1 basis point to 3.21 percent and the yield on short-term 2-year traded 3 basis points up at 2.01 percent by 04:00 GMT.
As the Reserve Bank of Australia (RBA) gets ready to make another decision on cash rates, experts are discussing the unlikelihood of a rise until next year. The RBA has kept rates at a record low of 1.5% since August 2016. Governor Philip Lowe, who will make the next rates announcement on Tuesday (5 June), has previously said the next move will be a hike.
Italy's political woes have rattled global financial markets in recent sessions, amid renewed concerns over the prospect that snap elections in Rome could be framed as a de facto referendum on the country's role in Europe. Hopes that a vote can be avoided emerged on Wednesday after reports claimed a populist trio of the 5 Star Movement, the League and Brothers of Italy were pushing to form a coalition government.
Meanwhile, the S&P/ASX 200 index traded 0.27 percent lower at 5,991.50 by 04:10 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -23.65 (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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