Australia 10-Yr Yield Rebounds After Wage Data

2026-02-18 02:57 By Judith Sib-at 1 min. read

Australia’s 10-year government bond yield rose to around 4.72%, rebounding from an over one-month low, as wage data supported the case for further policy tightening.

The wage price index rose 0.8% in the December quarter, the same as the previous period and matching expectations.

Annual growth edged up to 3.4% from a revised 3.3%.

This pointed to continued tightness in the labor market and persistent inflationary pressures.

Minutes from the Reserve Bank of Australia’s latest meeting showed policymakers judged this month’s rate increase as necessary, noting that risks to inflation and employment had “shifted materially.” The minutes also emphasized that financial conditions were not yet restrictive enough to curb excess demand.

Attention now turns to Thursday’s jobs report for further insights on the labor market conditions and the likely path of interest rates.

Currently, traders are assigning a 60% chance to a follow up hike in May, with another move fully priced in by August.



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Australia 10-Yr Yield Rebounds After Wage Data
Australia’s 10-year government bond yield rose to around 4.72%, rebounding from an over one-month low, as wage data supported the case for further policy tightening. The wage price index rose 0.8% in the December quarter, the same as the previous period and matching expectations. Annual growth edged up to 3.4% from a revised 3.3%. This pointed to continued tightness in the labor market and persistent inflationary pressures. Minutes from the Reserve Bank of Australia’s latest meeting showed policymakers judged this month’s rate increase as necessary, noting that risks to inflation and employment had “shifted materially.” The minutes also emphasized that financial conditions were not yet restrictive enough to curb excess demand. Attention now turns to Thursday’s jobs report for further insights on the labor market conditions and the likely path of interest rates. Currently, traders are assigning a 60% chance to a follow up hike in May, with another move fully priced in by August.
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