Australian bonds nearly flat in subdued trade; unemployment rate in focus

The Australian government bonds traded nearly flat Wednesday, succumbing to thin trading activity during a relatively quiet session that witnessed data of little significance.

Also, investors will now remain keen to focus on the upcoming unemployment rate for October, which is scheduled to be release on Thursday by 00:30 GMT.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 2.66 percent mark and the yield on short-term 2-year remained steady at 1.81 percent by 04:50 GMT.

On Tuesday, the Reserve bank of Australia in its November meeting minutes mentioned that the underlying inflation is expected to return to normal levels over time and the Australian economy is seen growing close to potential over the next few quarters, before picking up further.

Further, the minutes repeated that a rising Australian dollar could complicate the economic transition and holding policy rate steady in November meeting was consistent with growth and inflation goals. It further mentioned that a steadier Chinese economy had reduced downside risks to the global growth outlook, while risks to global inflation outlook more balanced than for some time.

Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.36 percent lower to 5,333.5 by 04:50 GMT. While at 04:00 GMT, the FxWirePro's Hourly Australian Dollar Strength Index stood neutral at -57 (lower than the range of -75 for bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex