AUS 10Y Yield Climbs After RBA Decision

2025-12-09 04:13 By Kyrie Dichosa 1 min. read

Australia’s government bond yield rose toward 4.8%, the highest since November 2023, after the RBA kept rates unchanged as expected and signaled that rate cuts are off the table for now.

The central bank held its cash rate at 3.6% for a third straight meeting, citing renewed inflation pressures and a still-tight labor market.

Officials noted that recent data point to rising upside risks to inflation, but emphasized that more time is needed to assess whether these pressures will persist.

They cautioned that temporary factors may be driving to the recent pickup and warned against reading too much into monthly inflation figures.

Governor Michele Bullock also said the RBA is likely to keep rates on hold or raise them in 2026, with no rate cuts expected anytime soon.

Markets now assign a 30% probability of a 25bps hike at the RBA’s next meeting in February and nearly a 100% chance by May.

Attention now shifts to Thursday’s labor market report for further clues on the economy’s strength.



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