Australian bond yields remain little higher as RBA meeting minutes provide no surprises
Source: FxWire Pro - Commentary / 20 Nov 2017 22:19:20 Eastern Standard Time
Australian government bonds remained little lower on Tuesday as the Reserve Bank of Australia (RBA) November monetary policy meeting minutes provided no surprises to the market.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1-1/2 basis points to 2.570 percent, the yield on the long-term 30-year note climbed 2-1/2 basis points to 3.349 percent and the yield on short-term 2-year rose 1/2 basis point to 1.783 percent by 02:20 GMT.
Members of the Reserve Bank of Australia's Monetary Policy Board said that the outlook for the country's economy remained more or less on track, minutes from the bank's November 7 meeting revealed on Tuesday. The members acknowledged that gross domestic product has been slightly weaker than expected and while not dramatically so, it's likely to head off any discussion of a rate hike in the near term.
Also, the members noted that any further appreciation of the Australian dollar would complicate matters, weighing on both economic growth and the inflation forecast. At the meeting, the RBA decided to maintain its benchmark interest rate at a record low 1.50 percent.
In the United States, Treasuries saw downward pressure across much of the curve during a relatively quiet session light on data of great significance and a general void in political commentary with Congress on Thanksgiving recess.
Meanwhile, the S&P/ASX 200 index traded 0.14 percent lower at 5,974.5 by 02:20 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index slightly bearish at -93.26 (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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