Australia’s 10-Year Bond Yield Eases

Australia’s 10-year government bond yield fell toward 4.41% after hitting an over seven-week high in the previous session, as investors turned their focus to upcoming jobs data. Market expectations are centered on an increase of 20,000 jobs and a steady unemployment rate of 4.1%. The labor market has remained surprisingly resilient, which has contributed to the RBA’s cautious stance on monetary easing. Last week, the RBA held its cash rate steady at 3.85%, confounding wagers for an easing to 3.60%. Currently, markets are pricing in an 80% chance of a rate cut in August, though much will depend on the second-quarter CPI report due at the end of July. Meanwhile, in the US, data showed that consumer inflation rose to a four-month high in June, leading traders to scale back expectations for Federal Reserve rate cuts in the near term.