Australian bonds lose in muted trading; RBA Governor Lowe’s speech in focus

The Australian bonds lost Monday as investors wait to watch the Reserve Bank of Australia (RBA) Governor Philip Lowe’s speech, scheduled to be held on September 5 amid a muted trading session that witnessed data of little economic significance.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 1 basis point to 2.666 percent, the yield on 15-year note hovered around 2.96 percent and the yield on short-term 2-year traded flat at 1.84 percent by 03:20 GMT.

While Yellen and Draghi weren’t quite the one-two punch combination that markets thought they could have been, they still appeared to work in tandem to deliver a clear message on a different (and perhaps slightly less market-sensitive) topic: financial system regulation. Both warned of the dangers of rolling back the regulations put in place since the financial crisis.

While Yellen did admit to having sympathy with the view that some regulations might be too onerous for community banks, she stated that “the balance of research suggest that the core reforms we have put in place have substantially boosted resilience without unduly limiting credit availability or economic growth.” Draghi later stated that

Meanwhile, the S&P/ASX 200 index traded 0.30 percent higher at 5,719.5 by 03:20 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 38.76 (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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