Australian bonds remain tad lower amid muted session; May retail sales barely create impact

Australian government bonds remained slightly lower Thursday amid a muted trading session that witnessed data of little economic significance. Also, the country’s retail sales for the month of May came in tad up from that in April, which barely created an impact on the debt market.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, remained tad higher at 1.296 percent, the yield on the long-term 30-year bond rose nearly 1 basis point to 1.948 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points higher at 0.948 percent by 04:25GMT.

Global risk appetite was healthy yesterday, but may be dented today after US president Trump accused Europe and China of playing a “big currency manipulation game”.

Wall Street climbed overnight ahead of the US’ Independence Day holiday today, with the S&P500 notching a third straight record close, while UST bonds also rallied with the 10-year bond yield down to 1.95 percent (lowest since November 2016).

Investors took stock of Trump’s two potentially dovish appointments to the Fed and also Lagarde after ECB president Draghi steps down in October

Meanwhile, the S&P/ASX 200 index remained tad 0.23 percent higher at 6,655.50 by 04:25GMT