Australian 10-year bond yield hits over 1-week high on upbeat trade data; short-term note gains on global trade angst

Australian 10-year bond yield hit over 1-week high on Thursday following higher-than-expected February trade balance data. On the contrary, investors bought more of short-term bonds over long-term debt amid rising trade global trade worries.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 3 basis points to 2.6656 percent, the yield on the long-term 30-year note climbed 4 basis points to 3.265 percent and the yield on short-term 2-year also fell nearly 2 basis points to 2.057 percent by 03:20 GMT.

Australia February trade surplus came in at 0.825 billion, better from the market expectations of 0.680 billion, a tad lower from January’s revised reading of 0.952 billion. On the other hand, the country’s exports and imports for the month of February both remained flat after registering 4 percent growth and -2 percent decline in January, respectively.

In the United States, Treasuries were largely range-bound overnight as markets absorbed a stronger than expected ADP employment estimate, increasing +241K for March, versus +246K in February, alongside relatively mild ISM non-manufacturing, 58.8 in March, down from 59.5 in February and factory orders releases +1.2% m/m in February, versus -1.3% m/m in January.

Meanwhile, the S&P/ASX 200 index traded 0.19 percent higher at 5,773.5 by 03:20 GMT, while at 03:20GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 36.31 (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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