The Australian bonds slumped with U.S. Treasuries Tuesday as market speculation rise on new hawkish Federal Reserve chairperson. However, the October Reserve Bank of Australia (RBA) meeting minutes failed to steer markets.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 2 basis points to 2.777 percent, the yield on the long-term 30-year note also climbed 1-1/2 basis points to 3.553 percent and the yield on short-term 2-year traded nearly 1 basis point higher at 1.917 percent by 02:30GMT.
Australian bonds fell with Treasuries as speculation climbed that the next head of the Federal Reserve will be more hawkish. The market is expecting Jerome Powell to be the next Federal Reserve Chair after Janet Yellen’ term expires on February 1 next year.
The October minutes noted that the RBA policymakers see no “mechanical implications” for Australian rates stemming from tighter monetary policy elsewhere. The central bank also showed some sign of worry about the effects of excessive Australian dollar strength. The AUD has slipped in the last few months, but AUD/USD remains close to this year’s peak, which is also a 2-year high.
The RBA added that the labour market conditions likely to remain firm, it expressed confidence about the outlook for wage growth and household consumption. Also, it noted that domestic economic conditions will determine when it decides to hike interest rates. And, given its commentary on Australia’s inflation outlook, it seems that could still be some way off at this point.
Meanwhile, the S&P/ASX 200 index rose 0.53 percent to 5,870.50 by 02:30 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 68.68 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest


Thailand Inflation Remains Negative for 10th Straight Month in January
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 



