Australian bonds jump tracking U.S. treasuries ahead of January employment report
Australian bonds jumped during early Asian session Wednesday, tracking similar movement in the U.S. Treasuries ahead of the employment report for the month of January, scheduled to be released on February 15 by 00:30GMT for further insight into the debt market.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.83 percent, the yield on the long-term 30-year note plunged 3 basis points to 3.47 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 1.99 percent 03:10GMT.
Investors will continued to watch the latest in the bond market as concerns over higher interest rates weighed.
The Labor Department is set to release its monthly Consumer Price Index (CPI) data on Wednesday, the next inflation update for investors. That report, along with the Producer Price Index (PPI) data on Thursday, will be scrutinized by both traders and Federal Reserve officials for any signs of price movement in the economy.
Any hint of rising inflation could push yields higher, a fear which helped spark last week’s big equity sell-off.
Meanwhile, the S&P/ASX 200 index traded 0.41 percent lower at 5,783.5 by 03:15 GMT, while at 03:00GMT, the FxWirePro’s Hourly AUD Strength Index remained neutral at 60.88 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend).
Source: FXWire Commentary