Australia 10-Year Yield Stabilizes After Jobs Report

Australia’s 10-year government bond yield stabilized at 4.20% on Thursday, halting a three-day decline as investors assessed the latest labour market data. Net employment rose by 24,500 in July, well above June’s 1,000 gain but just shy of expectations for a 25,000 increase. The unemployment rate edged down to 4.2%, from a four-year high of 4.3% in the prior month and matching forecasts. The figures helped ease concerns that the labour market was on the verge of a sharp slowdown, suggesting less urgency for the Reserve Bank of Australia to follow this week’s rate cut with another in September. On Tuesday, the RBA lowered interest rates as expected but stayed cautious on the outlook, leaving markets to anticipate a three-month pause before any further easing. Meanwhile, wage pressures appear contained, with annual pay growth holding steady at 3.4% in the second quarter—well below the 2023 peak of 4.2%.