Australia 10-Year Bond Yield Rises

Australia’s 10-year government bond yield rose to around 4.32%, approaching a one-month high, as investors digested data showing resilience in the economy. The manufacturing sector expanded at its fastest pace since September 2022, with exports returned to modest growth after several months of contraction. Job ads also rose 0.1% in August, rebounding from July’s decline and signaling a resilient labor market. The latest data added to the case against an immediate rate cut, following a larger-than-expected jump in consumer prices in July. Markets are now pricing in only around 34 bps of additional easing for the rest of 2025. Investors are turning their attention to this week’s Q2 GDP report, which could provide further insight into economic strength and influence the RBA’s next moves. Elsewhere, traders are eyeing US labor data for clues on the Fed’s next moves, after the latest PCE figures showed persistent inflationary pressures that could influence global bond yields.