Australia 10-Year Bond Yield Declines

Australia’s 10-year government bond yield fell to around 4.30%, extending its retreat from multi-month highs and mirroring the global decline in yields following a weak US jobs report. Downbeat data pointing to further labor market weakness reinforced dovish remarks from FOMC officials, who recently stressed the need to adjust policy in response to a cooling economy and softening job market. Domestically, investors expect the Reserve Bank to keep rates steady later this month and have scaled back prospects of easing in November, a view strengthened after the economy grew faster than expected in the June quarter, marking the strongest annual pace in nearly two years and largely driven by household consumption. Additional trade and spending data supported this outlook, with exports rising, imports falling, and household spending accelerating. RBA Governor Michele Bullock also cautioned that further rate cuts may be unlikely if consumer demand continues to rise rapidly.