Hawkish speech tipped from RBA

SYDNEY - Australia's dollar may rise and government bonds fall because the first speech as governor of the Reserve Bank of Australia by Glenn Stevens will bolster the outlook for higher interest rates, said Citigroup.

Stevens will highlight strength in the domestic and global economy in a speech in Sydney tomorrow, said Stephen Halmarick, co-head of economics and market analysis at Citigroup Australia.

The currency will gain 3.7 per cent by year-end and benchmark bond yields may rise 6 basis points, he said.

- BLOOMBERG