Australian government bonds traded mixed on Monday as investors remain sidelined in any major trading activity amid a silent session that witnessed no data of major economic importance. Also, trading volumes today are likely to be thin as U.S. markets remain closed for Martin Luther King birthday.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1-1/2 basis points to 2.748 percent, the yield on the long-term 30-year note dipped 1 basis point to 3.432 percent and the yield on short-term 2-year up 2 basis points to 2.062 percent by 03:40 GMT.
Australian employment report for December are due on Thursday and another upbeat result would likely see the odds narrow further. Market expectations are for a rise of about 15K in employment with the unemployment rate remaining unchanged at 5.4 percent.
In the United States, Treasuries saw downward pressure across much of the curve following the release of stronger than expected core CPI for December. This managed to push the 2-year Note yield above the 2.00%-mark for the first time in nearly 10 years before retreating.
Markets now look ahead to a lighter flow of data in the U.S. this week, highlighted by Empire manufacturing, industrial production/capacity utilization, Beige Book, housing starts/building permits, Philadelphia Fed manufacturing and University of Michigan consumer sentiment releases. Additionally, markets receive a 10-year TIPS auction on Thursday.
Meanwhile, the S&P/ASX 200 index traded 0.30 percent lower at 6,037.0 by 03:40 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 9.32 (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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