Australia 10-Year Yield Approaches 4-Week Low

Australia’s 10-year government bond yield slipped to around 4.21%, nearing a four-week low, as markets digested recent remarks from the RBA. Assistant Governor Sarah Hunter said inflation is getting closer to the central bank’s target range and described the outlook as balanced, while stressing the need for a forward-looking approach given policy lags. She also pointed to signs of stronger consumer spending and reiterated the RBA’s goal of keeping the economy near full employment. Firmer economic data has recently tempered expectations of an immediate rate cut, with markets now assigning an 86% probability that policy will remain unchanged this month. Still, futures continue to price in around an 80% chance of easing in November. Investor focus is shifting to the upcoming jobs report and comments from other RBA officials. Separately, markets are awaiting the US rate decision this week, with a widely expected 25 bps cut likely to pressure global yields.