Australian 10-year bond yields surge to 7-week high post promising August employment report

The Australian 10-year bond yields surged to 7-week high Thursday after investors moved away from safe-haven assets, following higher-than-expected employment report for the month of August that ignited signals of a promising economic performance of the country.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 6 basis points to 2.73 percent, the yield on 15-year note also surged 6 basis points to 3.03 percent and the yield on short-term 2-year traded 4 basis points higher at 1.94 percent by 03:00GMT.

Australia’s Employment rose a very strong 54.2k in August, continuing the strength of the past year. Employment has had an extraordinarily strong run of jobs growth with eleven straight monthly gains with an average increase of 31.4k. The unemployment rate printed at 5.6 percent, unchanged from July.

Further, the quarterly update on underemployment showed a step down in the three months to August. Underemployment came in at 8.6 percent, down from 8.8 percent in May and the record high of 8.9 percent recorded in February.

Meanwhile, the S&P/ASX 200 index fell 0.31 percent to 5,728.50 by 03:05 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -52.83 (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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