Australia’s 10-year government bond yield fell below 5%, hitting its lowest level in nearly three months as expectations that the Reserve Bank of Australia has reached the end of its tightening cycle boosted demand for government debt. Last week’s 6–3 split decision to raise the cash rate to an 18-year high of 4.85%, coupled with the removal of its tightening bias, reinforced expectations that borrowing costs have peaked. Interest rate swaps now imply an 80% probability that rates have reached their peak, with around 30 basis points of easing priced in by the end of next year. Meanwhile, weaker domestic business and consumer confidence added to concerns about economic growth amid elevated cost pressures and higher interest rates. Westpac’s consumer sentiment index fell 2.7% to 78.2 in November, its lowest level in four years, while business confidence dropped to a six-year low in October, according to the NAB business survey.