Australian bonds trade mixed ahead of long Easter holidays; next week’s RBA policy decision in focus

Australian government bonds mixed on Thursday as investors continued to stay on the sidelines ahead of long Easter holiday. Also, markets await the Reserve Bank of Australia (RBA) monetary policy decision scheduled next week.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell 1 basis point to 2.590 percent, the yield on the long-term 30-year note dipped 1/2 basis point to 3.183 percent and the yield on short-term 2-year rose 2 basis points to 2.017 percent by 02:00 GMT.

In the United States, Treasuries saw mixed performance again on Wednesday, highlighted by the 10-year Note yield remaining below the 2.80 percent-mark, during a relatively quiet session. Markets now look ahead to a flurry of data to finish off the week on Thursday (ahead of the Good Friday holiday), highlighted by personal income/spending, jobless claims, Chicago PMI and University of Michigan consumer sentiment releases.

Next week, the Reserve Bank of Australia (RBA) is scheduled to meet for its next monetary policy meeting on Tuesday, where it is expected to keep its official cash rate unchanged at 1.50%. However, the Australian central bank’s statement tone will be watched closely to understand future policy direction.

Meanwhile, the S&P/ASX 200 index traded 0.36 percent lower at 5,749.5 by 03:15 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at 25.19 (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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