Australian bonds remain in tight trading range after long weekend; eyes on May employment report

Australian government bonds remained in tight trading range, after domestic markets opened following a long weakened and investors will now focus on the country’s employment report for the month of May, scheduled to be released on June 14 by 01:30GMT.

The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, rose 1/2 basis point to 2.80 percent, the yield on the long-term 30-year Note fell 1-1/2 basis points to 3.30 percent and the yield on short-term 2-year hovered around 2.07 percent by 03:15 GMT.

The United States Treasury yields rose during the overnight session, trading in a tight range, as traders looked past two batches of Treasury auctions to the upcoming Federal Reserve meeting, where a rate hike is expected.

President Donald Trump is due to meet on Tuesday with North Korean leader Kim Jong Un in Singapore to discuss future relations and denuclearization. While no major concrete results are expected to come out of this initial meeting, investors hope the meeting will reinforce relations between the isolated state of North Korea and the West.

Lastly, the U.S. central bank is expected to announce a quarter-point increase in interest rates as it seeks to normalize monetary policy with the economy showing signs of health, CNBC reported.

Meanwhile, the S&P/ASX 200 index traded 0.21 percent lower at 6,068.50 by 03:20 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 67.54 (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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