Aussie 10-Year Yield Pulls Back from 2-Week High

Australia’s 10-year government bond yield fell to around 4.28%, retreating from a more than two-week high, following a dovish pivot in US monetary policy that pushed global yields lower. Last week, Federal Reserve Chair Jerome Powell highlighted rising downside risks to the labor market, leaving the door open for future rate cuts. Domestically, attention turns to the Reserve Bank of Australia’s meeting minutes on Tuesday for further guidance on interest rates, after the central bank cut the cash rate by 25 basis points to 3.6% last week but maintained a cautious tone. Investors are also eyeing the upcoming CPI report, expected to show acceleration, consistent with expectations of a possible three-month pause before further easing. Strong July jobs data, with rising employment and slightly lower unemployment, indicate labor market resilience have eased pressure on the RBA to cut rates immediately.