Australian bonds remain flat in muted session ahead of May employment report

Australian government bonds remained flat during early Asian session Tuesday amid a muted trading session that witnessed data of little economic significance ahead of the country’s employment report for the month of May, scheduled to be released on June 13 by 01:30GMT.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose remained flat at 1.479 percent, the yield on the long-term 30-year bond hovered around 2.123 percent and the yield on short-term 2-year too traded steady at 1.087 percent by 03:40GMT.

Global risk sentiment improved on Monday on the back of relief from the US-Mexico immigration deal. Dow Jones rose for the sixth consecutive day. Yields on 10-year US Treasury recovered to the 2.15 percent range, OCBC Treasury Research reported.

The biggest news overnight was Trump’s threaten to push ahead the scheduled meeting with President Xi in the upcoming G20 meeting. He said the US will impose an additional round of tariff on the remaining US$300 billion Chinese goods if President Xi skips the meeting.

Nevertheless, President Trump said he thinks President Xi will go. “China is going to make a deal because they are going to have to make a deal,” the report added.

Meanwhile, the S&P/ASX 200 index edged tad 0.48 percent higher to 6,533.5 by 03:45GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -69.39 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex