(Bloomberg) -- Australian bond yields slumped in early trading Friday, following Treasuries, as weak economic data from Europe to the U.S. added to growing recessionary fears. 

The yield on 10-year Australian debt fell as much as 17 basis points to 3.67% while that on three-year notes dropped 17 basis points to 3.18%. Yields on the more rate-sensitive three-year benchmark have fallen as much as 46 basis points this week and are headed for the biggest weekly drop since August 2011.

Australia’s bonds have whipsawed this month after the RBA raised rates more than economists forecast and Governor Philip Lowe said policy makers would do what’s necessary to bring inflation down. The 10-year bond yield rose to 4.26% last week, the highest since January 2014, before tumbling as investors feared the pace of central bank hikes will push economies into recession.

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