Australian government bonds traded narrowly mixed on Tuesday as investors remain remained sidelined in any major deal ahead of the Reserve Bank of Australia (RBA) Governor Philip Lowe speech.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.554 percent, the yield on the long-term 30-year note traded nearly flat at 3.297 percent and the yield on short-term 2-year surged 1/2 basis point to 1.837 percent by 02:30 GMT.
The U.S. Treasury curve saw mixed performance overnight as modest selling in the short-end was contrasted by greater upward pressure further out the curve, during a relatively quiet session light on data of great significance.
Markets continue to await the December FOMC statement on Wednesday, largely expected to deliver another 25 basis points rate hike but guidance to be more muted, given the ongoing changes at the top of the FOMC ladder. In the more immediate-term markets await producer prices and Treasury budget statement data on Tuesday, accompanied by a 30-year bond auction in the afternoon.
On the other hand, the investors will also look forward to the Thursday’ employment report from the Australian Bureau of Statistics, where employment is expected to grow 19.2K in November, up from October’s 3.7K along with steady unemployment rate at 5.4%.
Meanwhile, the S&P/ASX 200 index traded 0.19 percent lower at 6,010.5 by 02:30 GMT, while at 02:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at +37.10 (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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