Australia’s 10-year government bond yield rose above 5.1%, rebounding from a two-month low in the previous session as investors positioned ahead of the Reserve Bank of Australia’s monetary policy decision. The RBA is expected to raise its cash rate by 25 bps to 4.85%, its highest level in nearly two decades and marking its fifth rate hike this year. The widely expected decision reinforced policymakers’ focus on bringing inflation under control after the annual inflation rate rose to 3.9% in Q3, well above the RBA’s 2–3% target range, while underlying inflation remained elevated at 3.7%. Meanwhile, Governor Michele Bullock described the labour market as “a little tighter” than the RBA had expected, despite the unemployment rate remaining at a five-year high of 4.7% in September. On the economic front, Australia’s Melbourne Institute Monthly Inflation Gauge increased by 0.5% month-on-month in October 2026, picking up from 0.3% in September and marking its fourth consecutive monthly gain.