Australian government bonds jumped across the curve during Asian session Monday amid a silent trading session that witnessed data of little economic significance ahead of the country’s consumer price inflation (CPI) data for the third quarter of this year, scheduled to be released on October 31 by 00:30GMT.
Also, the Reserve Bank of Australia’s (RBA) Assistant Governor Bullock is due to deliver a speech on October 30 by 02:10GMT for added direction in the debt market.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 4 basis points to 2.572 percent, the yield on the long-term 30-year bond slumped 3 basis points to 3.079 percent and the yield on short-term 2-year traded nearly 2 basis points lower at 1.982 percent by 03:50GMT.
The US government bond yields fell on Friday as the softening in investor sentiment enhanced the appeal of safe haven government bonds. The yield on the 10-year US government bond fell from 3.12 percent to 3.08 percent. The yield on the 2-year US government bond fell from 2.85 percent to 2.81 percent.
"Asian bourses may trade in a range today, as investors await fresh catalysts amid the tentative bargain-hunting interest," OCBC Bank reported in its Daily Treasury Outlook.
Meanwhile, the S&P/ASX 200 index traded 1.30 percent lower at 5,713.5 by 04:05GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 70.96 (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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