Australia 10-Year Yield Falls After RBA Minutes

Australia’s 10-year government bond yield fell to around 4.29%, approaching a two-week low, as investors digested the latest RBA meeting minutes. The July meeting minutes showed the board agreed further rate cuts would be appropriate over time but stressed the importance of timing and scale. Most members preferred to wait for confirmation that inflation is slowing, noting that cutting rates three times in four meetings would not align with a cautious and gradual approach. Still, markets are now pricing in a 91% chance of a rate cut at the August meeting, with futures pointing to rates bottoming around 3.1% by early next year. The shift follows a weaker-than-expected jobs report, which signaled potential cracks in the previously resilient labor market. Investors now look ahead to a speech by Governor Michele Bullock for more insights into the RBA’s policy path, along with flash PMI readings later this week for further signals on economic momentum.