Australia 10-Year Yield Steadies

Australia’s 10-year government bond yield steadied at 4.29% on Friday after falling in the previous session, as investors continued to assess the Reserve Bank’s monetary policy outlook. Earlier in the week, data showed that consumer prices in July jumped by more than expected, dampening hopes for an imminent rate cut next month. Markets are now pricing in only around 34bps of additional easing for the remainder of 2025. The inflation figures came a day after the release of the RBA’s latest meeting minutes, which reiterated the central bank’s openness to further interest rate cuts, provided inflation continued to ease in line with its forecasts. Attention will now shift to next week’s second-quarter GDP report, which will provide further insights on the strength of the economy and may influence the RBA’s next moves. On the global front, investors are now awaiting the release of the US PCE price index later in the day for more cues on the Federal Reserve’s interest rate trajectory.