Australian bond yields dropped after weak jobs report

Australian bond yields surrendered gains after a dismal September jobs report soured the sentiment and increased demand for government bonds.

At the time of writing, the 10-year yield was trading at 2.314%. The yield clocked a high of 2.377% ahead of the jobs report release.

The 2-yr yield, which mimics short-term interest rate bets/short-term inflation expectations, was seen trading 3.7 basis points lower around 1.685%. The yield clocked a high of 1.753% earlier today.

Aussie government bond yields have been on the rise off late, leading to a five-day winning streak in the Australian dollar against the greenback. The currency pair was last seen trading just below 0.76 handle.