Australian bond yields slump tracking U.S. counterpart amid ongoing NAFTA negotiations

Australian bond yields slumped during Asian session Friday, tracking a similar movement in U.S. peer amid ongoing trade negotiations over NAFTA with Canada and Mexico.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slumped 4-1/2 basis points to 2.526 percent, the yield on the long-term 30-year bond plunged 5 basis points to 3.042 percent and the yield on short-term 2-year lost 2 basis points to 1.972 percent by 04:30GMT.

According to a report from the CNBC, "U.S. government debt yields slipped on Thursday amid trade discussion between the United States and its North American allies. Canada has until Friday to join a trade deal made between the U.S. and Mexico, according to President Donald Trump. However, the president said he was confident an agreement between the two nations was within reach".

Further, the report noted "The Treasury plans to borrow $329 billion in the current July through September quarter, 74 percent higher than the $189 billion borrowed in the same quarter one year ago and the largest July to September amount since 2010".

Meanwhile, the S&P/ASX 200 index traded 0.33 percent lower at 6,314.50 by 03:30GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained highly bearish at -152.782 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex