The benchmark 10-year Australian government bond yield rebounded to above 3.40%, not far from an almost 8-year peak of 3.60% hit earlier this month as investors braced for the Reserve Bank of Australia to deliver aggressive interest rate hikes to tame inflation in coming months. Minutes from the bank's last meeting showed that a 40-basis-point could be on the table in June given the worsening outlook for inflation. Moreover, the RBA's economists assumed the cash rate would reach 1.75 percent by the end of this year and 2.5 percent by the end of 2023.
Historically, the Australia Government Bond 10Y reached an all time high of 16.50 in August of 1982. Australia Government Bond 10Y - data, forecasts, historical chart - was last updated on May of 2022.
The Australia Government Bond 10Y is expected to trade at 3.49 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.87 in 12 months time.