Australian 10-year bond yield hits over 3-month low as risk appetite wanes

Australian government bonds gained on Wednesday as investors moved to safe-haven buying following heavy sell-off in the high yielding alternative assets like equities. Following this, the 10-year Note yield fell to its lowest in more than 3-months.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell nearly 7 basis points to 2.601 percent, the yield on the long-term 30-year note dipped 7-1/2 basis points to 3.184 percent and the yield on short-term 2-year slumped 5-1/2 basis points to 1.995 percent by 02:40 GMT.

In the United States, Treasuries found upward pressure Tuesday afternoon alongside a considerable sell-off in equities, largely attributed to weakness in tech stocks. All in all, the highlight of this action was the 10-year Note yields move back below the 2.80 percent mark, something that will surely provide a point of contention in the sessions ahead.

On the data front, markets received relatively solid support from both S&P CoreLogic Case-Shiller home prices and Conference Board consumer confidence data, despite an overall pullback for March, following considerable gains in February. Markets now look ahead to a lighter flow of data on Wednesday, highlighted by final fourth-quarter GDP revisions and pending sales releases, neither of which is likely to cause a significant stir, followed by a 7-year Note auction later in the session.

Meanwhile, the S&P/ASX 200 index traded 0.23 percent higher at 5,774.5 by 03:10 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bearish at -105.27 (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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