Australian bonds continue to slump following improving risk sentiments on relief of Hurricane Irma, North Korea tensions

The Australian bonds continued to slump Tuesday, following improving risk sentiments among investors after Wall Street remained sharply higher on Monday in a broad rally led by technology and financial stocks, especially insurers, on relief that Irma weakened to a tropical storm and North Korea did not conduct a nuclear test as was anticipated.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 2 basis points to 2.63 percent, the yield on 15-year note also climbed 2 basis points to 2.84 percent and the yield on short-term 2-year traded 1/2 basis point higher at 1.87 percent by 02:40GMT.

Hurricane Irma weakened to a tropical storm on Monday, according to the latest update from the National Hurricane Center. However, Irma is still producing wind gusts which are close to hurricane force and the storm is currently moving its way across Florida.

Also boosting risk appetite was North Korea holding a massive celebration on it Founding Day on Saturday, instead of another long-range missile launch as the United States and its allies were bracing for.

With the tensions easing, world stocks climbed to a record high, while the dollar edged higher and gold retreated from Friday's 13-month high.

Meanwhile, the S&P/ASX 200 index rose 0.34 percent to 5,755.50 by 02:45 GMT, while at 02:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bearish at -130.93 (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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