Australian bonds suffer after August employment report cheers market investors

Australian bonds suffered during Asian trading hours Thursday after the country’s August employment report cheered market participants, besides, a resume of trade talks between the United States and China, which further added to losses in safe-haven instruments.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped nearly 2 basis points to 2.609 percent, the yield on the long-term 30-year bond climbed 1-1/2 basis points to 3.109 percent but the yield on short-term 2-year traded 3 basis points higher at 2.044 percent by 03:35GMT.

Australia’s employment rose a strong 44.0k in August, more than reversing the modest 4.3k drop in July. Over the past three months, employment has risen an average of 33k per month. The strength was due to a sharp rise in full-time jobs (33.7k), while part-time jobs also rose (10.2k). The unemployment rate was stable at 5.3 percent, while the participation rate rose to 65.7 percent.

The sell-off in debt market was also supported as the market struggled to maintain a positive tone on reports that the U.S. reached out to China to resume trade talks.

Meanwhile, the S&P/ASX 200 index traded 0.20 percent lower at 6,148.5 by 03:40GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at 43.58 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex