Australian bonds slump on investors’ rising risk appetite post first round of French elections

The Australian government bonds slumped Monday on rising risk appetite of global investors post the first round of French elections concluded early today. Also, investors unwound hedges following a keenly-watched French election in which centrist Emmanuel Macron swayed to victory in the first round.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 7 basis points to 2.61 percent, the yield on the 15-year note climbed 6-1/2 basis points to 3.01 percent and the yield on short-term 2-year traded 3 basis points higher at 1.69 percent by 04:20 GMT.

Asian stock markets are mostly higher and risk assets rallied on Monday, as investors reacted positively to the outcome of the first round of the French presidential election. The Australian market is advancing for a third straight day as the first-round results of the French presidential elections came in on expected lines.

Meanwhile, the ASX 200 index traded 0.07 percent up at 5,841.50 by 04:30GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 55.80 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex