Australian bonds narrowly mixed ahead of U.S. election

The Australian government bonds traded narrowly mixed Tuesday as investors await the United States 2016 presidential election result.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 2.361 percent, the yield on 15-year note also climbed 1 basis point to 2.736 percent and the yield on short-term 2-year slid 2 basis points to 1.660 percent by 04:40 GMT.

The 2016 U.S. election takes place today, after which the world's most powerful nation will have a new leader. Hillary Clinton or Donald Trump will become the 45th President of the United States.

The Reserve bank of Australia in its November Monetary Policy Statement (SoMP) mentioned that it expects GDP growth to be around 2.5 to 3.5 percent by the end of next year and around 3 to 4 percent by the end of 2018, this is unchanged from the August forecast.

Additionally, inflation is also expected to stay steady in the near term, likely to rise gradually to 2 percent by the end of 2018. The underlying inflation is forecasted to climb 1.5 percent by end 2016 and to reach around 1.5 to 2.5 percent by end of 2018.

Moreover, the Reserve Bank of Australia maintained its key benchmark rate at a record low of 1.50 percent in its November 1 monetary policy meeting, judging that unchanged policy is consistent with growth and inflation targets.

Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.38 percent lower at 5,232.5 by 04:40 GMT.