Australian bond yields rise on upbeat Aussie labor data


  • Aussie bond yields rise on a surprise drop in Australia's Unemployment Rate. 
  • Markets have scaled back expectations for an RBA rate cut in November. 

Australian government bond prices fell, pushing the yields higher after the official data released at 00:30 GMT showed the seasonally adjusted Unemployment Rate fell to 5.2% in September from August's 5.3%. 

The market was expecting the jobless rate to remain steady at 5.3%. Further, the Fulltime jobs increased by 26.2K, having dropped by 15.5K in August. Employment rose by 14.7K in September – a big drop from August's 34.7K rise, although the sharp growth in August was primarily driven by the part-time jobs. 

The data is good enough to keep the Reserve Bank of Australia (RBA) from cutting rates in November, as tweeted by Kyle Rodda, Market Analyst, Australia, IG. 

More importantly, the odds of an RBA rate cut in November dropped to 25% from 45% seen before the release of the labor market report, according to MNI's Anthony Barton

As a result, the yields are gaining altitude. At press time, the 10-year government bond yield is trading at 1.065% – up 1.5 basis points from the low of 1.05% seen before 00:30 GMT. 

Meanwhile, the 10-year yield, which is more sensitive to interest rate expectations, is currently trading at 0.734%, representing a two basis point gain on the low of 0.714% registered before the Aussie data release. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures