Australian bonds remain flat tracking mild movement in U.S. Treasuries; RBA June meeting minutes eyed

The Australian bonds traded flat at the start of the trading week Monday, tracking mild movement in the U.S. counterpart amid a softer trading week. Also, investors are eyeing the Reserve Bank of Australia’s (RBA) monetary policy meeting minutes, for the month of June, scheduled to be released on June 20 for further direction in the debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose close to 1 basis point to 2.43 percent, the yield on 15-year note hovered around 2.78 percent while the yield on short-term 2-year traded 1 basis point higher at 1.69 percent by 05:00 GMT.

The RBA Governor Philip Lowe said that he remains optimistic about the economic and financial condition of the country in the foreseeable future. However, warned that political opposition to reform could condemn Australia to a slowdown in growth.

"The return of mining investment to more normal levels is almost complete. Monetary policy continues to provide support and survey-based measures of business conditions have improved noticeably. Employment growth has also strengthened over recent months," he added.

Meanwhile, the ASX 200 index traded 0.37 percent higher at 5,738.50 by 05:10GMT, while at 05:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 53.69 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex