Australia 10-Year Yield Approaches 2-Week High

Australia’s 10-year government bond yield rose to around 4.29% on Monday, nearing a two-week high, as investors digested RBA comments emphasizing a measured approach to rate cuts. Governor Michelle Bullock said the central bank would remain alert to shifts in the economic outlook, noting that recent data have broadly aligned with expectations. While recent rate cuts should support household and business spending, global conditions remain uncertain. The RBA also highlighted that it is approaching its dual objectives of price stability and full employment, with inflation on track for the midpoint of the 2–3% target range and the labor market still near full employment. Markets now see a 75% chance of easing in November, down from fully priced earlier, with swaps implying fewer than two additional cuts by mid-next year. Investors’ attention now turns to upcoming PMI data and the monthly CPI release for further guidance.