Australia 10-Year Yield Edges Higher

Australia’s 10-year government bond yield inched up to 4.22%, as investors awaited key local jobs data due on Thursday that could shape the Reserve Bank’s interest rate outlook. Markets currently assign only a 20% chance of a rate cut at the RBA’s meeting this month, while expectations for a November move—which was almost certain just weeks ago—have been pared back to around 70%, following a run of solid domestic data. Meanwhile, Assistant Governor Sarah Hunter said on Tuesday the RBA is “pretty close” to bringing inflation back to the midpoint of its 2-3% target, adding that the central bank is closely watching the underlying strength of consumer demand as it seeks to keep the economy near to full employment as possible. On the global front, attention turns to the US Federal Reserve’s policy decision at the end of its policy meeting later in the day, where it is widely expected to cut rates by 25bps.