Australian bonds gain on hopes of deterioration in September employment change; jobless rate seen steady

Australian government bonds gained across the curve during Asian session Wednesday as investors hope to see a deterioration in the country’s employment report for the month of September, scheduled to be released on October 18 by 00:30GMT. The unemployment rate is however, seen to remain unchanged from that in August.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slipped 1 basis point to 2.718 percent, the yield on the long-term 30-year bond slumped nearly 2 basis points to 3.187 percent and the yield on short-term 2-year traded nearly 2 basis points lower at 2.038 percent by 03:35GMT.

The Australian economy is anticipated to have created 15,200 jobs in September, 28,800 jobs less than the previous month. Moreover, the unemployment rate matched a low last experienced in November 2012 in the previously tracked month and is forecast to remain at the same 5.3 percent level in August, as the previous two months. This is positive, given that the participation rate is predicted to hold steady at 65.7 percent in September, a report from XM confirmed.

Meanwhile, the S&P/ASX 200 index traded 0.56 percent higher at 5,920.5 by 03:40GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 102.42 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex