BoE likely to maintain guidance for gradually higher rates as long as Brexit has not been clarified, says DNB Markets
EM Asian currencies likely to advance if US and China make concrete progress in renewed trade negotiations, says Scotiabank
India unlikely to witness recovery in consumption or investment growth owing to sluggish demand, says ANZ research
U.S. Treasury yields slump on hopes of 25bp Fed rate cut; Chair Powell’s post-conference speech eyed
Likelihood of RBA adopting alternative policy measures rises with cash rate getting closer to effective lower bound, says ANZ Research
Australian bonds slump post RBA’s decision to stay pat; investors eye Governor Lowe’s speech
The Australian government bonds slumped Tuesday after the Reserve Bank of Australia (RBA) maintained its benchmark cash rate on hold at its monetary policy meeting held today.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 3 basis points to 2.62 percent, the yield on 15-year note surged 4 basis points to 3.04 percent and the yield on short-term 2-year traded 1-1/2 basis points higher at 1.69 percent by 04:40 GMT.
The BA held its benchmark cash rate at a record low 1.5 percent as widely expected, but noting the housing market presents challenges to policy. All 65 economists polled by Reuters predicted the central bank would maintain the cash rate at 1.5 percent at Tuesday's meeting.
"Conditions in the housing market continue to vary considerably around the country," Governor Philip Lowe said in a statement.
Meanwhile, the ASX 200 index traded 0.35 percent down at 5,923.50 by 05:00GMT, and the FxWirePro's Hourly AUD Strength Index remained highly bullish at 133.06 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex