AUS 10Y Yield Trades Near Multi-Decade Highs

2026-03-30 03:38 By Joshua Ferrer 1 min. read

Australia’s 10-year government bond yield held above 5%, moving near its highest level since July 2011 as a global oil shock tied to the prolonged Middle East conflict intensified inflation risks and clouded the economic outlook.

Oil prices continued to climb as the conflict in Iran entered its fifth week, with renewed attacks in the region increasing risks to global energy supply.

In response, Australia's Prime Minister Anthony Albanese announced a temporary cut to fuel taxes to help ease cost pressures, underscoring the broader impact on the economy.

Focus now turns to the release of the Reserve Bank’s March meeting minutes after a narrow vote to raise rates to 4.1%, with investors watching how policymakers balance persistent inflation against slowing growth, especially as fuel shortages have emerged in parts of the country.

Economists are increasingly cautious, with some warning of a potential second-quarter contraction as higher rates and energy costs weigh on consumption.



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