Australia 10-Year Yield Inches Down Ahead of CPI Data

Australia’s 10-year government bond yield fell to around 4.34% as investors await the release of second-quarter inflation data later this week, which could provide more clues on the Reserve Bank’s path for rate cuts. The figures are seen as pivotal in assessing whether inflation is returning sustainably to the RBA’s 2–3% target band—an essential condition for easing policy. Last week, Governor Michele Bullock reaffirmed that a “measured and gradual” policy approach remains appropriate, particularly as global risks, including trade tensions, appear to be easing. Still, markets are pricing in an 85% chance of a 25bps rate cut at the central bank’s next meeting in August. In the latest trade developments, the US and EU reached a framework agreement on Sunday, raising hopes for more deals ahead of the August 1 deadline.