Australia 10-Year Yield Edges Down

Australia’s 10-year government bond yield ticked down to 4.35% on Friday, extending its decline from the previous session, despite a run of upbeat economic data this week that reinforced expectations the Reserve Bank will keep interest rates on hold later this month. Earlier in the week, data showed the Australian economy expanded by more than expected in the June quarter, lifting the annual growth to its fastest pace in nearly two years, driven primarily by household consumption. In addition, Australia’s goods trade surplus widened in July, as exports rose and imports fell, while household spending accelerated in July. RBA Governor Michele Bullock also warned that further interest rate cuts may be unlikely if consumer spending continues to rise rapidly. Meanwhile, investors globally braced for the US non-farm payrolls report due later in the day, as markets increasingly expect that the Federal Reserve could cut rates later this month.