Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Australian government bonds traded modestly lower Wednesday, following a surge in equities during a relatively quiet session. Also, markets are likely to maintain recent range in the lead up to Fed Chair Yellen’s Jackson Hole speech on Friday.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose more than 1/2 basis point to 1.913 percent and the yield on short-term 2-year climbed nearly 1 basis point to 1.438 percent by 05:10 GMT.
The Australian bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Reserve Bank of Australia's target. Additionally, tumbling crude oil prices limited the growth in bond yields.
The crude oil prices declined more than 1 percent as Iraq prepared to increase its exports and renewed concerns that upcoming producer talks will not rein in oversupply. Also, worries about expanding Chinese fuel exports dragged oil prices. The International benchmark Brent futures fell 1 percent to $49.45 and West Texas Intermediate (WTI) dipped 1.29 percent to $47.48 by 05:00 GMT.
In terms of economic data release, Australia second quarter construction work done fell 3.7 percent, the market was expecting a decline of 2.0 percent, as compared to -0.3 percent (revised from -2.6 percent) in the first quarter of 2016. Construction activity has been trending lower, falling from historic highs in 2012.
Lastly, markets are likely to maintain recent ranges in the lead up to Fed Chair Yellen’s Jackson Hole speech on Friday.
Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.31 percent higher to 5,548.5 by 05:00 GMT.
