Australia 10Y Yield Climbs to Highest Level Since 2011
2026-03-09 00:44
By
Judith Sib-at
1 min. read
Australia’s 10-year government bond yield climbed to around 4.95%, reaching its highest level since July 2011, as the expanding war in the Middle East stoked inflation fears.
The conflict, now entering its second week, has prompted several major oil producers in the region to cut output, pushing energy prices sharply higher.
This has raised concerns that inflation could accelerate, which may force central banks to adopt a more hawkish policy stance.
RBA Governor Michele Bullock said last week that the central bank is “very alert” to the conflict’s potential impact on inflation expectations and is ready to hike rates if necessary.
Traders currently assign roughly a 30% probability to a rate hike later this month and are fully pricing in a move by May, as the labor market remains tight and inflationary pressures persist.