The Australian bonds rallied Thursday following prompted by comments by U.S. President Donald Trump on favoring low interest rates made in a newspaper interview published in late U.S. trading.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 5-1/2 basis points to 2.47 percent, the yield on 15-year note also plunged nearly 5-1/2 basis points to 2.87 percent and the yield on short-term 2-year traded nearly 2 basis points lower at 1.62 percent by 04:20 GMT.
"I do like a low-interest rate policy," Trump told the Wall Street Journal. Trump also said he likes and respects Federal Reserve Chair Janet Yellen, whose term ends in 2018, although he was critical of her during his presidential campaign, Reuters reported.
Trump's views on the Fed and interest rates, as well as the dollar, came as bonds had traded earlier in a tight range with safe-haven demand tied to international political worries offsetting investor sales to make room for this week's $56 billion in coupon-bearing Treasuries supply, they added.
On the other hand, the Fed officials have signaled the U.S. central bank may raise interest rates twice more by the end of 2017.
Meanwhile, the ASX 200 index traded 0.43 percent lower at 5,869.50 by 04:50GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 148.90 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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