Australia 10-Year Yield Climbs After Upbeat GDP Data

Australia’s 10-year government bond yield rose to 4.42%, hitting a one-and-a-half-month high as traders reacted to stronger-than-expected GDP figures. The economy expanded by 1.8% year-on-year in the second quarter, the fastest pace in nearly two years, surpassing expectations of 1.6% and accelerating from 1.3% in the first quarter. On a quarterly basis, GDP rose by 0.6%, also ahead of the forecast 0.5% and the previous quarter’s 0.3% gain. Growth was driven primarily by household consumption, signaling resilience in domestic demand. This has reinforced expectations that the Reserve Bank of Australia will keep its cash rate unchanged at its meeting later this month. The central bank has so far adopted a gradual and cautious approach to policy easing, having only cut in February, May, and August. Attention now turns to RBA Governor Michele Bullock’s speech on technology and the future of central banking, where investors will be looking for any hints on the monetary policy outlook.