Australian 10-year bond yields slump to 5-month low tracking U.S. Treasuries, geopolitical tension

The Australian 10-year bond yields plunged to near 5-month low on the last trading day of the week as investors poured interest in safe-haven assets, after the United States fired a fleet of missiles against the Syrian airbase earlier today, which further shored up bond demand.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 6 basis points to 2.54 percent, the yield on 15-year note plunged nearly 6 basis points to 2.94 percent and the yield on short-term 2-year traded nearly 3 basis points lower at 1.64 percent by 04:20 GMT.

British Prime Minister Theresa May spoke on Monday with U.S. President Donald Trump and agreed that "a window of opportunity" exists to persuade Russia to break ties with Syrian President Bashar al-Assad, May's office said.

The United States President Donald Trump is open to authoritizing additional strikes on Syria if the use of chemical weapons continues in the country, the White House said on Monday. Investors are also nervous about the possibility of U.S. military action against North Korea after the strikes in Syria.

A U.S. Navy strike group headed toward the western Pacific Ocean near the Korean peninsula as a show of force, while China and South Korea agreed on Monday to tougher sanctions on North Korea if it carries out nuclear or long-range missile tests.

The heightened geopolitical risks come at a time when the global economy has shown steady improvement, led by the United States and encouraging momentum in export-reliant Asia.

Meanwhile, the ASX 200 index traded 0.32 percent higher at 5,916.50 by 04:50GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -98.29 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex