Australia 10-Year Yield Rises Ahead of Jobs Data

Australia’s 10-year government bond yield rose to around 4.24%, rebounding from a six-week low in the previous session as investors repositioned ahead of key labor market data due later this week. Soft jobs figures would further bolster expectations of near-term rate cuts, following a recent string of disappointing economic indicators—including weaker-than-expected Q1 GDP, subdued business activity in May, and cautious consumer spending despite a rate cut during the month. Last week, markets priced in nearly a 90% chance of a 25 basis point rate cut to 3.60% by the RBA in July. Meanwhile, markets continued to monitor tensions in the Middle East after an Israeli airstrike last week triggered risk-off sentiment across global markets. Israel and Iran exchanged strikes over the weekend, with both nations vowing to continue retaliating.