The Australian government bond yields cheered market investors after trade negotiations began between the United States and China in Washington yesterday, keeping markets hopeful of a positive outcome by end of this week.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 12 basis points to 1.015 percent, the yield on the long-term 30-year bond surged nearly 13 basis points to 1.615 percent and the yield on short-term 2-year remained tad higher at 0.708 percent by 05:10GMT.
Market sentiments improved overnight after US President Trump opined that trade talks went “very well” and he will be meeting Chinese Vice Premier Liu He today, OCBC Treasury Research reported.
Should a mini US-China trade truce materialise, then the upcoming 15 October tariff trance (raising the tariffs from 25 percent to 30 percent on AUD250 billion) stands a good chance of being postponed, but the longer-term bilateral relations may remain fragile on the tech, human rights and other hotspots, the report added.
Meanwhile, the S&P/ASX 200 index gained tad 0.22 percent to 6,585.50 by 05:15GMT.


Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 



