Australian Yields Rise on U.S., China Growth; Aussie Holds Drop

Australia’s benchmark bond yields climbed, extending the steepest rise this quarter among developed markets, as signs of economic growth in China and the U.S. sapped demand for the safety of government debt.

The Aussie dollar halted its biggest two-day slide since August after industrial output growth unexpectedly accelerated in China, the South Pacific nation’s biggest trading partner. A separate report may show Australian home-loan approvals rose the most in six months in September. New Zealand’s currency was supported after data showed retail card spending gained the most in more than a year.

Australia’s benchmark 10-year bond yield rose 11 basis points, or 0.11 percentage point, to 4.24 percent, as of 10:25 a.m. in Sydney, poised for the highest close since March 21, 2012. Yields on three-year notes gained seven basis points to 3.14 percent.

The Aussie was at 93.75 U.S. cents from 93.85 on Nov. 8 and has fallen 1.5 percent over the previous two sessions. New Zealand’s dollar was little changed at 82.56 U.S. cents.

China’s industrial production rose 10.3 percent in October from a year earlier, the National Bureau of Statistics said Nov. 9, exceeding the 10 percent median estimate in a Bloomberg News survey of economists and the previous month’s 10.2 percent.

U.S. payrolls grew by 204,000 in October, versus the median forecast for a 120,000 gain, Labor Department figures showed Nov. 8.

(Source: Bloomberg)