Australia's 10-year government bond yield has climbed to approximately 4.2%, marking its highest point in over two months. This increase in domestic yields is closely linked to a rise in US bond yields following a stronger-than-expected US jobs rort, which has muted expectations for a significant rate cut by the Federal Reserve next month.
Investors are now keenly anticipating the Reserve Bank of Australia’s (RBA) meeting minutes for further insights into the central bank's approach to interest rates. In its last meeting, the RBA opted to kethe official cash rate steady at 4.35% for the seventh consecutive time, indicating that rate cuts appear unlikely in the near future as the bank focuses on bringing inflation back within its target range of 2-3%.
As of October 7, the Australia 10-Year Bond Yield stood at 4.27% according to over-the-counter interbank yield quotes. Analysts predict that this yield is expected to trade at about 3.90% by the end of the current quarter, with further projections suggesting it may settle around 3.68% in the next twelve months.