Australian bonds sag on profit taking; next week’s unemployment rate in focus

The Australian 10-year bonds sagged on the last trading day of the week as investors cashed in profits after relishing previous gains. Also, investors are curiously eyeing next week unemployment rate for further direction in the debt market.

The 10-yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 3 basis points to 2.70 percent, the yield on 15-year note also surged almost 3 basis points to 3.14 percent and the yield on short-term 2-year moved up 3 basis points to 1.86 percent by 04:55GMT.

Further, market participants will also be awaiting the Australian labor market data, scheduled for release next week for further direction in the debt market.

It is worth noting that the Australian bonds have been closely following movements in the U.S. debt market. The U.S. benchmark 10-year bond yields jumped 8 basis points to 2.38 percent, from yesterday’s low of 2.30 percent.

Moreover, Donald Trump in his public appearance on Wednesday said that he is handling over his personal businesses to his son to avoid future discrepancies. Regarding a relationship with Russia, he claimed that association with Vladimir Putin is an asset, rather than a liability.

Meanwhile, the benchmark Australia's S&P/ASX 200 index traded 0.79 percent lower at 5,721.10 by 05:15 GMT, while at 5:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bullish at 84.54 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex