Australia 10Y Yield Hits 1-Month High

2026-04-29 03:00 By Joshua Ferrer 1 min. read

Australia’s 10-year government bond yield rose above 5%, hitting a one-month high as a sharp rise in inflation kept expectations of a rate hike next week.

Headline inflation jumped to 4.6% annually in March, slightly below forecasts of 4.7%, but remained above the Reserve Bank’s 2–3% target and marked the highest since monthly CPI data began in 2025.

The annual trimmed-mean measure held at 3.3%, in line with expectations as higher fuel costs stemming from Middle East supply disruptions added to already elevated price pressures.

Markets are pricing in an 80% probability of a 25-basis-point hike in the cash rate to 4.10%, which would return it to post-pandemic highs, with a further increase to 4.60% expected by September.

In the US and other G-7 economies, policymakers are likely to hold rates steady this week while monitoring the risk of rising energy costs fueling inflation, as the Strait of Hormuz remained effectively closed amid stalled US–Iran peace talks.



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