Australia’s 10-year government bond yield fell below 5.4%, pulling back from its highest level since mid-2011, despite the central bank’s fourth interest rate hike this year. In a unanimous decision, the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60% as widely expected, bringing the policy rate to its highest level in about fifteen years. The central bank has now raised rates by a total of 100 basis points this year in an effort to contain persistent inflation amid rising global energy prices stoked by the Middle East conflict. Swaps priced in a 56% chance of a follow-up move in November, while the odds of a December hike stood at 60%. Attention now turns to August inflation data due on Wednesday for further clues on the policy outlook. Meanwhile, bonds remained caught up in the global selloff amid elevated inflation risks from rising oil prices, while Treasury yields climbed to fresh multi-year highs on growing expectations of further Federal Reserve hikes.