Australian bonds gained on the first day of the trading week after the U.S. 10-year Treasury yield retreats from 4-year high. Also, investors await the Reserve Bank of Australia (RBA) February meeting minutes scheduled for Tuesday.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 2 basis points to 2.879 percent, the yield on the long-term 30-year note also declined 2 basis points to 3.510 percent and the yield on short-term 3-year down 1/2 basis point to 2.131 percent by 02:20 GMT.
In the United States, government 10-year note yield declined from a 4-year low of 2.87 percent despite hotter-than-expected import prices and housing starts data. Last week, U.S. government debt yields achieved new highs, with the yield on the 10-year Treasury touching 2.944 percent, a new four-year high. The 2-year Treasury yield touched its highest level since 2008 Thursday.
Markets now look ahead to a lighter flow of data in the holiday-shortened week ahead, highlighted by minutes from the 30-31 January FOMC meeting. Additionally, markets receive 2-year Note, 5-year Note and 7-year Note auctions on Tuesday, Wednesday and Thursday, respectively.
The Australian central bank said last week that it expected wage inflation to accelerate only very slowly, suggesting it would take a substantially higher outcome to alter the outlook for steady rates. Markets believe that the meeting minutes to showcase the same tinge on Tuesday.
Meanwhile, the S&P/ASX 200 index traded 0.62% higher at 5,889.5 by 02:20 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 33.46 (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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