Australian bonds edge slightly higher amid fears of trade war with two world’s biggest economies

Australian government bonds gained on the last trading day of the week Friday amid rising fears of a trade war between world’s biggest economies after U.S. President Donald Trump threatens further $100 billion in tariffs against China.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell 1/2 basis point to 2.667 percent, the yield on the long-term 30-year note dipped 1/2 basis point to 3.276 percent and the yield on short-term 2-year also fell 1 basis point to 2.048 percent by 04:00 GMT.

In the United States, Treasuries drifted modestly lower during relatively light action overnight as markets looked ahead to the March employment report on Friday, highlighted by a push by the 10-year Note yield back about the 2.80 percent mark.

On the data front, markets saw greater than an expected upward pressure in both jobless claims, increasing +24K to 242K and trade balance data (widening to -$57.6 billion in February, versus -$56.7 billion in January, though neither of which had a substantial impact ahead of non-farm payrolls.

Meanwhile, the S&P/ASX 200 index traded 0.40 percent lower at 5,766.5 by 04:20 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -51.97 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex