Australian bonds mixed as investors digest FOMC statement, U.S. jobless claims lowest since April

The Australian government bonds saw mixed performance Friday day as markets continued to digest the September FOMC statement, coupled with relatively mixed United States economic data.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 4 basis points to 2.058 percent, the yield on long-term 15-year note also dipped 4 basis points to 2.420 percent and the yield on short-term 2-year bounced 1-1/2 basis points to 1.619 percent by 04:20 GMT.

The global bond prices bounced after the Federal Open Market Committee left fed funds rate unchanged in a 0.25-0.50 percent range, in line with market expectations. One key highlight of the statement was the note that near-term risks to the economic outlook appear roughly balanced. However, the Committee continues to closely monitor inflation indicators and global economic and financial developments.

Moreover, the United States initial jobless claims for the week ending 17 September August decreased 8k to 252k, well below expectations for a 261k result, as compare to the unrevised 260k reading seen in the week prior. The 4-week average was reported at 258.5k, down from the unrevised 260.8k reading seen in the week prior. Meanwhile, continuing claims for week ending 10 September decreased to 2.113 million, versus the 2.149 million reading seen prior. The insured unemployment rate decreased to 1.5 percent, down from 1.6 percent.

In addition, the FHFA House Price Index increased 0.5 percent m/m in July, versus the revised 0.3 percent m/m increase seen for June (previous 0.2 percent m/m). This comes in above market expectations for a 0.4 percent m/m result.

Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.54 percent higher to 5,409.5 by 04:20 GMT.