Australian bonds jump tracking firmness in U.S. Treasuries

The Australian bonds jumped mid-week Wednesday, tracking firmness in the U.S. counterparts amid a session that witnessed data of little economic significance. Also, the Reserve Bank of Australia’s (RBA) March monetary policy meeting minutes, released a day earier, painted a mixed picture of the economy, adding sluggishness to market sentiments.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 6 basis points to 2.76 percent, the yield on 15-year note nose-dived 6-1/2 basis points to 3.14 percent and the yield on short-term 2-year traded 3 basis points lower at 1.78 percent by 04:10 GMT.

The minutes of the RBA March board meeting continued to paint the picture of an RBA unwilling to move official interest rates any time soon. The Board highlighted a range of positives, but concerns were also raised. The central bank was notably more upbeat about the global outlook and the flow on effect to higher commodity prices.

Concerns surrounding the outlook for the labour market were apparent, with the RBA noting that "conditions had remained mixed" and that "momentum in the labour market remained difficult to assess". A further mixed picture on the labour market leaves the RBA between a rock and a hard place.

Meanwhile, the ASX 200 index traded 0.72 percent up at 5,671.50 by 04:20GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained bearish at -83.43 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex