Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Australian bonds sag as U.S.-China trade talks progress; 10-year yield jumps 3bps

Australian government bonds slumped across the curve during Asian trading session Friday as better-than-expected U.S. economic data and progress in U.S.-China trade talks helped investors to move from safe-haven buying.

Risk sentiment was boosted by a news report that U.S. Treasury Secretary Mnuchin is about to lift bans on the Chinese import, although, he denied the comment later. However, that news was enough to boost bond yields, stocks and the AUD.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 3 basis points to  2.315 percent, the yield on the long-term 30-year bond climbed 2 basis points to 2.849 percent and the yield on short-term 2-year up 2-1/2 basis points to 1.891 percent by 03:50 GMT.

“Yields on U.S. treasuries rose in step with stronger risk appetite and on stronger-than-expected economic data. Yields on 10-year notes rising 2 basis points to 2.75 percent, lifting on the Philadelphia manufacturing release, and then again on the report the US could halt Chinese tariffs,” noted St.George Bank.

On the currency ANZ said the Australian dollar remained relatively well supported amid U.S. dollar strength, as broader sentiment improved. In a quiet data day it will likely remain locked in familiar ranges.

Lastly, markets will closely watch China’s Q4 GDP growth which is scheduled be released on January 24 at 0200 GMT. We expect the growth to fall to 6.4 percent in the last quarter of 2018.

Meanwhile, the S&P/ASX 200 index traded 0.03 percent higher at 5,822.50 by 04:20 GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 6.48 (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 >

April 18 14:30 UTC Released

USNat Gas-EIA Implied Flow

Actual

92 bcf

Forecast

Previous

29 bcf

April 18 14:30 UTC Released

USNat Gas, Change Bcf

Actual

92 Cubic feet

Forecast

87 Cubic feet

Previous

25 Cubic feet

January 31 00:00 UTC 637648637648m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 637648637648m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 649468649468m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 637648637648m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 649468649468m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 637648637648m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 637648637648m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 637648637648m

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.