Australia 10Y Yield Rises Ahead of CPI

2026-05-26 02:27 By Joshua Ferrer 1 min. read

Australia’s 10-year government bond yield rose above 4.9%, attempting to recover from a six-week low as fresh US strikes on Iran dampened hopes for a peace deal, while markets awaited key domestic inflation data.

April CPI due this week is expected to show consumer prices rising 0.6% month-on-month, with annual inflation easing slightly to 4.4% from 4.6%, largely due to a government fuel tax break.

However, the RBA’s preferred trimmed mean measure is forecast to accelerate to 3.4% annually from 3.3%, reflecting rising transport and logistics costs across a broad range of industries.

A stronger inflation reading could strengthen the case for further policy tightening, although markets currently assign only a 10–12% chance of a 25-bp rate hike in June, while the odds of an August increase stand near 50%.

Elsewhere, oil prices advanced after reports of fresh military strikes in Iran clouded prospects for an interim agreement between Tehran and Washington to reopen the Strait of Hormuz.



News Stream
Australia 10Y Yield Rises Ahead of CPI
Australia’s 10-year government bond yield rose above 4.9%, attempting to recover from a six-week low as fresh US strikes on Iran dampened hopes for a peace deal, while markets awaited key domestic inflation data. April CPI due this week is expected to show consumer prices rising 0.6% month-on-month, with annual inflation easing slightly to 4.4% from 4.6%, largely due to a government fuel tax break. However, the RBA’s preferred trimmed mean measure is forecast to accelerate to 3.4% annually from 3.3%, reflecting rising transport and logistics costs across a broad range of industries. A stronger inflation reading could strengthen the case for further policy tightening, although markets currently assign only a 10–12% chance of a 25-bp rate hike in June, while the odds of an August increase stand near 50%. Elsewhere, oil prices advanced after reports of fresh military strikes in Iran clouded prospects for an interim agreement between Tehran and Washington to reopen the Strait of Hormuz.
2026-05-26
Australia 10Y Yield Hits 7-Week Low
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