Australian bonds narrowly mixed in thin trading; U.S. markets closed for 'Martin Luther King Day'

Australian bonds traded narrowly mixed Monday in thin trading activity during a relatively quiet session that witnessed data of little significance. Also, minimal trading was witnessed across the globe as the U.S. markets remain closed for 'Martin Luther King Day'.

The 10-yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 2.71 percent, the yield on 15-year note remained steady at 3.13 percent and the yield on short-term 2-year moved down 1/2 basis point to 1.86 percent by 05:30 GMT.

Further, market participants will also be awaiting the Australian labor market data, scheduled for release Thursday for further direction in the debt market.

In terms of recent economic data, the Australia’s Melbourne Institute (MI) consumer inflation gauge climbed 0.5 percent in December (rose for the fifth straight month) and was up 1.8 percent from a year ago. That was the biggest gain in six months. In November, the inflation index nudged up 0.1 percent, which translated into a year-over-year gain of 1.5 percent.

Meanwhile, the benchmark Australia's S&P/ASX 200 index traded nearly flat at 5,702.5 by 05:30 GMT, while at 5:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bullish for second straight working day at 77.45 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex