Australian bonds jump tracking U.S. Treasuries, offsets prior anxiety post Fed’s meeting minutes

Australian bonds jumped during early Asian session on the last trading day of the week, tracking similar movement in the U.S. Treasuries, offsetting prior anxiety raised that came after Federal Reserve minutes signaled more interest-rate hikes in the offing.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.83 percent, the yield on the long-term 30-year note fell 1-1/2 basis points to 3.47 percent and the yield on short-term 2-year traded 2 basis points lower at 1.99 percent by 03:15 GMT.

Investor anxiety resurfaced Wednesday, after minutes from the Federal Reserve's latest meeting revealed that members were comfortable hiking rates multiple times throughout 2018. Adding to the pressure on debt, the Federal Open Market Committee's meeting occurred prior to two major inflation indicators: wage growth in the January jobs report and an uptick in the CPI.

Traders widely expect the central bank to approve a quarter-point increase at its March meeting, moving up the Fed's target range to 1.5 percent to 1.75 percent; the CME Group's FedWatch tool see the likelihood of a March hike at 83 percent.

Meanwhile, the S&P/ASX 200 index traded 0.70 percent higher at 5,992.70 by 03:15 GMT, while at 01:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 59.66 (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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