The Australian Dollar maintained its grip on sharp gains on Tuesday, thanks to the rumor of that the Reserve Bank of Australia would hike the interest rates here by next week.
Commonwealth Government April 2020 bond’s yield at 16:30 AEDT was 5.792%, exceeding Monday's figures of 5.786. The May 2013 bond stood at 5.296%, bettering Monday's close of 5.273%.
Adam Donaldson, Head of Debt Research at Commonwealth Bank stated that the RBA was “increasing investor conviction”. He further added that at its monthly board meeting on April 6, the RBA would increase the cash rate from 4% to 4.25%.
“It's carry-over from yesterday's appearance by RBA chief Glenn Stevens Sunrise program. The market is firming up its conviction the RBA will hike rates and there's been a flattening push on the yield curve”, Mr. Donaldson was quoted as saying.
The commodity futures contract of 10 year June bond on the Sydney Futures Exchange stood at 94.170 on Monday’s close. The June 3 year bond commodity futures contract dropped from a previous 94.570 to 94.550.
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