Australia’s 10-year government bond yield fell below 5.3%, pulling back from mid-2011 highs and tracking lower global yields as easing concerns over Middle East supply disruptions reduced inflation pressures. Oil prices retreated after Saudi Arabia worked to restore flows through its East-West pipeline, while President Trump is set to meet Gulf leaders next week. In Australia, hawkish comments from the Reserve Bank’s top official reinforced expectations for further policy tightening. Governor Michele Bullock said upside inflation risks were materializing and warned that higher costs could make inflation more persistent. Her remarks follow statements over the past month by senior RBA officials that inflation remains elevated and needs to ease further. Markets now priced at least two more rate hikes by the February meeting, with a roughly 87% chance the first occurs on September 29. That marks a notable shift from the start of September, when traders were pricing just one further hike.