Australian bonds trade flat in subdued session, likely to track global cues

Australian government bonds traded flat on Tuesday in subdued session as investors remained sidelined amid lack of economically significant data through the day.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, traded flat at 2.691 percent, the yield on the long-term 30-year note remained steady at 3.276 percent and the yield on short-term 2-year traded flat at 2.070 percent by 03:00 GMT.

In the United States, Treasuries saw mixed performance during a relatively quiet session in terms of data as markets continued to focus on international trade developments. News of willingness on behalf of both Chinese and US officials to discuss a trade agreement aimed at averting an all-out trade war weighed on the complex early, while providing a significant boost to equities, reversing some of the downward pressure seen last week.

Much of this move was ultimately unwound with respect to Treasuries over the course of the session, though still managing to hold lower in the short-end, contrasted by modest upward pressure in the 30-year bond. Markets now look ahead to a handful of releases on Tuesday, highlighted largely by S&P CoreLogic Case-Shiller home prices and Conference Board consumer confidence data, followed by a 5-year Note auction later in the session.

Meanwhile, the S&P/ASX 200 index traded flat at 5,810.5 by 03:15 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -25.31 (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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