Australian bonds sharply rebound tracking firm U.S. Treasuries

The Australian bonds sharply rebounded on the first trading day of the week Monday as investors poured into safe-haven assets tracking firmness in U.S. Treasuries amid losses in riskier equities and oil. Also, the lower-than-expected reading of the latter’s manufacturing PMI added to the upside sentiment.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 6-1/2 basis points to 2.70 percent, the yield on 15-year note plunged nearly 7 basis points to 3.10 percent and the yield on short-term 2-year traded 5 basis points lower at 1.73 percent by 03:50 GMT.

The seasonally adjusted Markit Flash U.S. Composite PMI Output Index registered 53.2 in March, to remain above the 50.0 no-change value for the thirteenth consecutive month. However, the latest reading was down from 54.1 in February and signalled the slowest expansion of private sector output since September 2016.

Further, At 53.4, down from 54.2 in February, the headline seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers’ Index (PMI) signalled the slowest overall upturn in business conditions since October 2016.

Meanwhile, the ASX 200 index traded 030 percent down at 5,729.50 by 03:50GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -48.26 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex