Australian bonds tad higher in subdued trade; private business confidence index disappoints

Australian bonds remained tad higher during Asian session Tuesday amid a subdued trading day that witnessed data of little economic significance. Also, the country’s private consumer confidence index disappointed market participants, thus partly dragging investors into safe-haven buying.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slid 1/2 basis point to 2.81 percent, the yield on the long-term 30-year note hovered around 3.40 percent and the yield on short-term 2-year traded 1 basis point lower at 2.03 percent by 04:30 GMT.

Australia’s ANZ-Roy Morgan consumer confidence fell 2.5 percent last week to 116, partially unwinding gains over the previous two weeks. The fall was broad-based, with households particularly pessimistic about current financial conditions.

Meanwhile, the S&P/ASX 200 index traded 0.38 percent lower at 5,959.50 by 04:35 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bullish at 94.80 (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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