• Australia 10-year bond yield reaches near 4-month high tracking U.S. counterpart on possibility of FED re-shuffle, global sell-off

    Source: FxWire Pro - Commentary / 18 Jan 2018 23:46:35   Eastern Standard Time

    Australian 10-year government bond yields hit a near 4-month high on the last trading day of the week, tracking similar sound in the U.S. counterpart, following a possibility of a re-shuffling in the United States Federal Reserve. Also, a massive, but synchronized global debt sell-off sent the bond yields to rise across the curve.

    The yield on the benchmark 10-year Treasury note, which moves inversely to its price, flaunted 6-1/2 basis points at 2.85 percent (highest since October 2017), the yield on the long-term 30-year note jumped a little over 8 basis points to 3.50 percent and the yield on short-term 2-year climbed 4-1/2 basis points to 2.12 percent by 04:25 GMT.

    After climbing above 2.6 percent in the overnight session, a short time ago benchmark US 10-year bond yields had pushed above 2.63 percent in early Asian trade.

    According to a report from Reuters, John Williams from the San Francisco Fed was in the running for the role of Vice Chair at the US Federal Reserve., whose approach to monetary policy is considered more on the hawkish side.

    Lastly, the U.S. House of Representatives has approved a stopgap spending bill on Thursday night to keep the government open past Friday, but Senate Democrats appeared ready to block the measure. The House approved the measure 230 to 197, despite conflicting signals by President Donald Trump sent throughout the day and a threatened rebellion from conservatives that ended up fizzling.

    Meanwhile, the S&P/ASX 200 index traded 0.21 percent lower at 5,956.50 by 04:30 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 22.70 (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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