Australian government bonds remained nearly flat during Asian session of the first trading day of the week Monday as investors remained side-lined amid a muted trading session that witnessed data of little economic significance.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, hovered around 1.788 percent, the yield on the long-term 30-year bond edged tad higher to 2.433 percent and the yield on short-term 2-year remained flat at 1.346 percent by 03:50GMT.
Global risk appetite may sustain to start this week after the US economy expanded a better than expected 3.2 percent (forecast: 2.3 percent), aided by net exports (+1.03 percent point to growth) and rising private inventories (+0.65 percent), OCBC Treasury Research reported.
Friday’s market action saw the S&P500 hitting a fresh record close, but the 10-year UST bond yield dipped 3bps to 2.5 percent as investors remained concerned that consumer spending had cooled for a third straight quarter to 1.3 percent (slowest since 2013) which suggested that growth momentum going ahead will ease, the report added.
Meanwhile, the S&P/ASX 200 index traded tad 0.57 percent lower at 6,333.00 by 03:55GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -44.96 (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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