Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Australia 10-year bond yield jumps to 1-week high after Trump softens stance on trade negotiations

Australian government bonds slumped across the curve during Asian trading session Wednesday after U.S. President Donald Trump softened his stance on trade negotiations overnight, along with tentative progress to avoid another government shutdown.

Sentiment was buoyed by developments on trade and hopes of avoiding another U.S. government shutdown. U.S. President Trump appeared to soften his stance on trade negotiations overnight, indicating he may be flexible on the March 1st deadline for a trade agreement with China, noted St.George Bank.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose  about 4 basis points to 2.15 percent, the yield on the long-term 30-year bond also climbed 4 basis points to 2.70 percent and the yield on short-term 2-year jumped over 2-1/2 basis points to 1.77 percent by 03:40 GMT.

“Overnight, Trump said he could let the March 1st deadline for a trade agreement with China slide “for a little while” to make a “real deal”. Although Trump said he’s generally “not inclined” to delay raising tariffs. Investors hope an extended deadline could allow a meeting between Trump and Chinese President Xi before the deadline,” St.George added.

Comments from Trump drove hopes another U.S. government shutdown could be avoided. On the bipartisan agreement on border security, Trump said he’s “not happy”, but that he may still back it. Encouragingly Trump said “I don’t think you’re going to see a shutdown”, although the added “If you did have it, it’s the Democrats’ fault”.

The rise in risk appetites drove safe-haven government bond yields higher. The yield on the U.S. government 10-year bond rose 3 basis points to 2.68 percent. The U.S. government 2-year bond yield rose by 2 basis points to 2.50 percent, the bank added.

Meanwhile, the S&P/ASX 200 index traded 0.45 percent lower at 6,018.50 by 03:50 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 117.14 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

July 2 15:00 UTC Released

DKCurrency Reserves

Actual

449.6 Stale

Forecast

Previous

451.7 Stale

July 2 13:45 UTC Released

USISM NY Biz Conditions

Actual

50 %

Forecast

Previous

48.6 %

January 31 00:00 UTC 814220814220m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 814220814220m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 826040826040m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 814220814220m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 826040826040m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 814220814220m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 814220814220m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 814220814220m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.