Australian bonds narrowly mixed as investors await U.S. tariff announcement, RBA September meeting minutes

Australian government bonds traded narrowly mixed during Asian session Monday as investors await U.S. President Donald Trump’s announcement of new tariffs on about $200 billion of Chinese imports.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 1 basis point to 2.624 percent, the yield on the long-term 30-year bond traded nearly flat at 3.119 percent and the yield on short-term 2-year remained steady at 2.037 percent by 03:20GMT.

U.S. President Trump could announce new tariffs on USD200 billion Chinese imports as early as today weighed on investor risk appetites.

“Diminished risk appetites boosted the safe haven appeal of government bonds, driving bond yields higher. The yield on the 10-year US government bond rose from 2.70-3.00 percent. It was the first time the 10-year yield moved above 3.00 percent since early August. The yield on the 2-year government bond rose from 2.76-2.78 percent (its highest since 2008),” noted economists at St.George Bank.

Also, investors remained sidelined amid a muted trading day that is scheduled to witness data of little economic significance. However, traders will eye September meeting minutes scheduled to be released on Tuesday at 01:30 GMT.

Meanwhile, the S&P/ASX 200 index traded 0.04 percent lower at 6,179 by 03:25GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at +15.50 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex