Australian bonds surge tracking U.S. Treasuries amid global economic and political worries

Australian government bonds surged during Asian session of the second trading day of the week Tuesday, tracking a similar movement in the United States Treasuries as investors shifted their interests towards safe-haven assets amid ongoing global economic and political worries.

Investors will now eye the country’s labour market report, scheduled to be released on August 15 by 01:30GMT.

The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slumped nearly 3 basis points to 0.943 percent, the yield on the long-term 30-year bond plunged 5 basis points to 1.579 percent and the yield on short-term 2-year traded flat at 0.736 percent by 04:50GMT.

Risk off sentiments continued to prevail yesterday amid concerns over the prolonged US-China trade war, political concerns in Argentina after President Macri’s rout in weekend primary elections, and the disruption to Hong Kong airport’s flight services, OCBC Treasury Research reported.

Further, Australia’s ANZ-Roy Morgan consumer confidence fell marginally by 0.3 percent last week, consolidating at an above average level.

Meanwhile, the S&P/ASX 200 index remained flat at 6,496.50 by 04:55GMT.