Australia 10-Year Yield Moves Higher

2025-10-06 05:02 By Kyrie Dichosa 1 min. read

Australia’s 10-year government bond yield rose toward 4.40%, nearing the almost four-week high touched last week as investors digested the latest inflation data.

The Melbourne Institute’s Monthly Inflation Gauge increased 0.4% in September, rebounding from a 0.3% fall in August and indicating that inflationary pressures may remain elevated in the third quarter.

The figures reinforced signs that price growth remains sticky despite the RBA’s efforts to keep inflation within its 2–3% target range.

The central bank kept its cash rate steady at 3.6% in September but noted persistent price pressures in services amid a tight labour market.

While most economists still expect a rate cut in November followed by another in 2026, markets remain cautious, pricing in only about a 40% chance of a move next month.

Investors now await remarks from RBA officials this week for further guidance on the policy outlook.



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