Australian bonds slump after employment report posts solid result in June

The Australian bonds slumped Thursday as investors moved away from safe-haven assets after witnessing a solid result in the country’s employment sector, with rising job addition and a stable rate of unemployment.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 2 basis points to 2.76 percent, the yield on the 15-year note climbed 2-1/2 basis points to 3.06 percent and the yield on short-term 2-year traded nearly 2 basis points higher at 1.94 percent by 03:50 GMT.

Australia’s labour market posted another solid result in June, with a 14k rise in employment, lifting the overall rise in jobs to 168k this year. The unemployment rate came in at 5.6 percent, in line with last month’s upwardly revised outcome. Employment remains 2 percent higher than a year go, and looks more in line with job advertisements and business conditions after the last few months of catch-up.

"The labour market remains in good shape, we expect ongoing job expansion in the near term, although further material inroads into the unemployment rate may be more difficult to achieve," ANZ Research commented in its latest report.

Meanwhile, the ASX 200 index rose 0.20 percent to 5,705.50 by 03:50GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 31.78 (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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