New Zealand’s 10-year government bond yield fell to 4.72%, its lowest level since late August, as weaker-than-expected labor market data reinforced expectations that the Reserve Bank of New Zealand may have limited scope for further monetary tightening. The unemployment rate rose to 5.7% in the third quarter, its highest since Q3 2015, exceeding expectations of 5.5%, while employment unexpectedly declined 0.1% from the previous quarter, against forecasts of a 0.4% increase. Wage growth also eased, pointing to continued softness in domestic demand and subdued underlying inflationary pressures. The figures prompted markets to scale back expectations of another rate hike in December, with the implied probability falling from nearly 80% to around 57%. The data also come just days ahead of New Zealand’s November 7 general election, adding to economic uncertainty as the ruling coalition faces pressure over its handling of the recovery.