Australian bonds slump tracking U.S. Treasuries as North Korean tensions subside

The Australian bonds slumped Monday as North Korean tensions apparently subsided a little flowing into a better mood for 'risk assets' and less demand for the 'safe haven instruments’.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 3 basis points to 2.625 percent, the yield on 15-year note also jumped 3 basis points to 2.926 percent and the yield on short-term 2-year traded nearly 2-1/2 basis points higher at 1.798 percent by 04:10 GMT.

Over the weekend, the U.S. Secretary of Defense Jim Mattis and Secretary of State Rex Tillerson in a written note to the Trump administration said that the they are continuing to seek diplomatic solutions to seek the “irreversible denuclearization” of North Korea. They added that the U.S. has no interest in regime change or accelerated reunification of Korea.

Also, investors explored the market for value following heavy losses during its last week session.

Lastly, markets will now be focusing on the country’s employment report for the month of July, scheduled to be released on August 17 by 01:30GMT, which will provide further direction in the debt market.

Meanwhile, the S&P/ASX 200 index traded 0.54 percent higher at 5,722.80 by 04:10 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -78.99 (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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