Australia 10-year bond yield hits 5-week high tracking overnight losses in U.S. Treasuries, UK Gilts and German bunds

Australian government bonds slumped on last trading day of the week Friday following overnight losses in the U.S. Treasuries, UK Gilts and Germany bunds, where 10-year Note yield breached 2.90 percent.

The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, rose 3 basis points to 2.882 percent, the yield on the long-term 30-year Note jumped 3 basis points to 3.388 percent and the yield on short-term 2-year also surged nearly 1 basis point to 2.133 percent by 02:50 GMT.

In the United States, Treasuries continued to be weighed down on Thursday during a relatively quiet session light on data of great significance. With respect to data, markets saw a modest rebound in Philadelphia Fed manufacturing (despite mixed underlying components), alongside little change in jobless claims decreasing -1K to 232K and a milder +0.3 percent m/m increase in leading economic indicators.

With respect to speakers, markets received little in the way of commentary, largely limited to Fed Governor Brainard who warned of cyclical pressure that could potentially cause problems down the road without adequate regulation. Markets now look ahead to what stands to be a relatively quiet Friday session with little in the way of significant economic data on tap.

On Thursday, Australia employment growth dipped to 4.9K in March, lower than the market expectations of 20.3K, up from -6.3K. The unemployment remained steady at 5.5 percent, in line with economists estimate.

Meanwhile, the S&P/ASX 200 index traded 0.27 percent higher at 5,864.5 by 03:05 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -76.85 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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