Australian bond yields climb tracking U.S. peer on improvement in risk sentiments after trade talks resume

Australian government bond yields during Asian trading session Friday tracking a similar movement in the United States counterpart as investors moved towards riskier assets after trade talks resumed between the U.S. and China.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, surged 4-1/2 basis points to 1.771 percent, the yield on the long-term 30-year bond climbed 3 basis points to 2.406 percent and the yield on short-term 2-year traded tad higher at 1.456 percent by 03:15GMT.

US’ third and final reading for GDP showed an annualised increase of 2.2 percent in Q4’18, down from the 2.6 percent pace estimated in February. The third reading is also lower than the 3.4 percent annualised expansion recorded in Q3.

The S&P500 saw modest gains overnight, while UST bond yields rose, with the 10-year up to 2.39 percent after touching a fresh year-to-date low of 2.34 percent. Amid Mnuchin and Lighthizer’s ongoing trade talks with China, White House advisor Kudlow has warned that trade negotiations could extend for weeks or months to reach a deal.

Meanwhile, the S&P/ASX 200 index traded 0.36 percent higher at 6,188.50 by 03:20GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 42.93 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex