Australian government bonds slumped on Tuesday following upbeat building approvals data. Also, strong risk sentiments moved away investors from safe-haven buying.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 3 basis points to 2.650 percent, the yield on the long-term 30-year note jumped 2 basis points to 3.346 percent and the yield on short-term 2-year climbed 3 basis points to 2.019 percent by 03:50 GMT.
Australia approvals for the construction of new homes jumped by a surprise 11.7 percent in November, driven by a spike in apartment and townhouse building in Melbourne. The increase in high-density building in the Victorian capital meant overall approvals comfortably beat market expectations of a 1.0 percent decline.
In the United States, Treasuries held relatively steady to open the week during a relatively quiet session light on data of great significance. On the data front, markets saw considerable gains in consumer credit, (increasing +$28.0bln in November, bolstered by solid gains in both revolving and non-revolving activity).
With respect to Fed speakers, markets received commentary from a number of sources. Providing a dovish angle, Atlanta Fed President Bostic said that he remained supportive of the Fed continuing along its gradual path, though cautioned it should not necessarily come in the form of 3-4 rate hikes per year.
Markets now look ahead to a relatively quiet session on Tuesday, highlighted by NFIB small business optimism and JOLTs bob openings, followed later by a 3-year Note auction.
Meanwhile, the S&P/ASX 200 index traded 0.17 percent higher at 6,100.5 by 03:50 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 41.37 (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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