Australian bonds trade lower tracking weak U.S. Treasuries; remain barely changed post-Yellen’s speech

The Australian bonds traded lower Wednesday, tracking weakness in the U.S. counterpart, but moved little after investors heard from the U.S. Fed Chair Janet Yellen.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1-1/2 basis points to 2.79 percent, the yield on the 15-year note climbed nearly  1 basis point to 3.06 percent and the yield on short-term 2-year traded 1-1/2 basis points higher at 1.96 percent by 01:55GMT.

The Federal Reserve may have overstated the strength of the labor market and the rate of inflation, leading to monetary policy ahead that will be easier than previously thought, Yellen said Tuesday. The market was barely changed after Yellen's speech.

In a Treasury auction which closed Tuesday afternoon, USD26 billion in two-year notes auctioned at 1.462 percent, with 45.6 percent at high yield and a bid-to-cover of 2.88.

Meanwhile, the S&P/ASX 200 index traded 0.62 percent lower at 5,635.50 by 02:20 GMT, while at 02:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -74.36 (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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