Australian range-bound in muted trading session amid rattled domestic politics

Australian bonds remained range-bound at the start of the trading week Monday as investors remained side-lined in a muted session that witnessed data of little economic significance. Also, the country’s domestic political situation still remains topsy-turvy, with a change in leadership, following a parliamentary chaos last week.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, traded flat at 2.546 percent, the yield on the long-term 30-year bond hovered around 3.072 percent and the yield on short-term 2-year rose 1/2 basis point to 2.008 percent by 04:00GMT.

The Australian Liberal Party on Friday resolved its leadership issues voting for Scott Morrison as leader and Josh Frydenberg as deputy. Frydenberg will also serve as Treasurer. Newspoll this morning suggested last week was unsurprisingly not a good one for the Government, with a 44/56 two party preferred outcome in favour of the Australian Labor Party, ANZ Research reported in its 'Australian Morning Focus' early today.

Prime Minister Morrison last night finalised cabinet appointments, which included the addition of a Population Minister. There are unlikely to be significant changes in policy, but like the former Prime Minister, Morrison will need to cater to the Liberal Party’s broad membership, including its conservative wing, the report added.

Meanwhile, the S&P/ASX 200 index traded 0.16 percent higher at 6,235.5 by 04:10GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 52.01 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex