Australia 10Y Bond Yield Hits 4-week Low

Australia’s 10-year government bond yield fell to around 4.72%, hitting its lowest level in four weeks, following a recent decline in US bond yields amid expectations of a more accommodative Federal Reserve. Still, further losses were limited by the Reserve Bank of Australia’s recent rate hikes and reaffirmed hawkish stance. Governor Michele Bullock told parliament the central bank is prepared to tighten policy further if price pressures persist, describing inflation “with a three in front of it” as unacceptable. The RBA expects both headline and core inflation to remain above target this year. Her remarks echoed those of Deputy Governor Andrew Hauser, who warned that inflation remains elevated and continues to present a significant challenge for policymakers. Markets now await the RBA minutes due on Tuesday, which could provide insights into how hawkish members were. Investors are also eyeing Q4 wage data and January labor market figures later this week.

Australia 10 Year Government Bond Yield decreased to 4.72%, the lowest since January 2026. Over the past 4 weeks, Australia 10Y Bond Yield gained 1.20 basis points, and in the last 12 months, it increased 26.50 basis points.

Australia’s 10-year government bond yield hovered around 4.74%, near its lowest level in over three weeks, even as the RBA reaffirmed its hawkish stance. Governor Michele Bullock, speaking before parliament, said the central bank is prepared to tighten policy further if price pressures persist, saying that inflation “with a three in front of it” is unacceptable. The RBA projects both headline and core inflation to remain above target this year. Bullock’s remarks echoed those of Deputy Governor Andrew Hauser, who earlier warned that inflation remains too high and continues to pose a major challenge for policymakers. Latest data also showed consumer inflation expectations rose to an eight-month high of 5% in February, adding to the case for a hike. The RBA raised its cash rate to 3.85% last week, becoming the first major central bank to resume tightening this year. Traders are now pricing in an 80% probability of a follow-up hike in May and a 60% chance of a third move later this year.