Aussie-US 10-yr yield spread largely unchanged after CPI release

Australian bond yields faded the post CPI spike, leaving the spread with US counterparts largely unchanged.

Aussie 10-yr yield had a lead of 39 basis points over its US counterpart, which has only improved marginally to 40 basis points following the CPI release. The 2-yr yield which had 82 points lead over the US 2-year yield has extended the lead further to 84 points after CPI figure.

The 10-yr Australian bond yield trades around 1.97%; up 4.4 basis points on the day. Meanwhile, the 2-yr yield trades around 1.60%; up 3.7 basis points on the day.