Australian bonds slump on profit-booking amid lack of significant data, investors defy softer trade surplus

The Australian bonds slumped Thursday as investors booked profits amid a lack of significant data through the day. However, investors have largely shrugged off the easing in the country’s trade surplus for the month of April.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 2-1/2 basis points to 2.42 percent, the yield on the 15-year note climbed 3-1/2 basis points to 2.81 percent while the yield on short-term 2-year traded 1/2 basis point higher at 1.62 percent by 03:50 GMT.

Australia's trade balance has fallen sharply to a surplus of AUD555 million after a steep decline in coal exports due to Cyclone Debbie. Economists had expected the surplus to decline to around AUD2 billion in April, from AUD3.1 billion in March.

Exports fell by AUD2.8 billion, or 8 percent, in April, on a seasonally adjusted basis, dragged down by a 45 percent fall in the value of coal exports after mines, rail lines and ports in Queensland were closed when Cyclone Debbie hit the east coast in late-March.

Meanwhile, the ASX 200 index traded 0.38 percent higher at 5,675.50 by 04:40GMT, while at 04:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bullish at 178.81 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex