Australian bonds extend sell-off following higher risk appetite, firmer equities

The Australian extended their sell-off Monday, tracking a similar trend in U.S. Treasuries after the latter’s labour market report showcased some relief to the otherwise uninspiring set of economic data that weighed on the financial markets. Also, investors shifted their interests toward riskier assets, including equities and crude oil, which sent bond prices lower.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped nearly 3-1/2 basis points to 2.66 percent, the yield on the 15-year note climbed 3 basis points to 2.96 percent while the yield on short-term 2-year traded 1 basis point higher at 1.79 percent by 04:10 GMT.

US Treasuries extended their sell-off on Friday, pushing yields sharply higher, as the latest jobs report underscored the strength of the world’s most important economy and heightened the odds of another interest rates hike this year, FT reported.

Australia ANZ Job Advertisements continue to trend up, rising 1.5 percent m/m in July in seasonally adjusted terms. Total job ads are now up 6.5 percent since the beginning of the year. Annual growth picked up from 10.5 percent in June to 12.8 percent this month.

Meanwhile, the S&P/ASX 200 index traded 0.62 percent higher at 5,718.50 by 04:20 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -35.74 (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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