Australia 10Y Yield Hits 15-Week Low

2026-06-17 02:25 By Joshua Ferrer 1 min. read

Australia’s 10-year government bond yield dropped below 4.8%, hitting a fifteen-week low as global oil prices continued to slide on optimism over the reopening of the Strait of Hormuz.

The US and Iran are expected to sign an interim peace agreement in Switzerland on Friday, which is seen restoring oil flows through the Persian Gulf and easing inflation concerns.

Meanwhile, the Reserve Bank of Australia signaled further tightening to restrain inflation.

Despite holding interest rates steady at its June meeting to assess the full impact of three rate hikes earlier this year, Governor Michele Bullock emphasized that inflation remains too high and reiterated that further rate increases cannot be ruled out.

While markets increasingly suspect that the tightening cycle is over, the RBA’s hawkish tone has kept a roughly 50% chance of one final hike this year priced in, but the odds of an August move stands at just 25%.

The upcoming May CPI report due next week will be pivotal for the outlook.



News Stream
Australia 10Y Yield Hits 15-Week Low
Australia’s 10-year government bond yield dropped below 4.8%, hitting a fifteen-week low as global oil prices continued to slide on optimism over the reopening of the Strait of Hormuz. The US and Iran are expected to sign an interim peace agreement in Switzerland on Friday, which is seen restoring oil flows through the Persian Gulf and easing inflation concerns. Meanwhile, the Reserve Bank of Australia signaled further tightening to restrain inflation. Despite holding interest rates steady at its June meeting to assess the full impact of three rate hikes earlier this year, Governor Michele Bullock emphasized that inflation remains too high and reiterated that further rate increases cannot be ruled out. While markets increasingly suspect that the tightening cycle is over, the RBA’s hawkish tone has kept a roughly 50% chance of one final hike this year priced in, but the odds of an August move stands at just 25%. The upcoming May CPI report due next week will be pivotal for the outlook.
2026-06-17
AUS 10Y Yield Stays Near Multi-Month Lows
Australia’s 10-year government bond yield traded around 4.8%, staying near multi-month lows after the Reserve Bank kept rates unchanged for the first time this year. In a unanimous vote, the central bank held the cash rate at 4.35%, citing signs that three rate hikes earlier this year are beginning to filter through the economy. While policymakers reiterated that inflation remains elevated, a recent series of softer economic data gave the RBA room to pause and assess the impact of past tightening. Markets now await Governor Michele Bullock’s press conference later today for clues on whether policymakers are leaning toward an extended pause or maintaining a tightening bias. Three of Australia’s four largest banks expect the RBA to keep rates unchanged for the remainder of 2026, with some forecasting rate cuts next year. Elsewhere, global inflation concerns eased as oil prices fell sharply following a tentative US-Iran peace deal that could lead to the reopening of the Strait of Hormuz.
2026-06-16
AUS 10Y Yield Hits Over 3-Month Low
Australia’s 10-year government bond yield dropped below 4.8%, hitting over a three-month low after a US–Iran interim peace deal eased global inflation concerns, while markets widely expect the Reserve Bank will hold policy rates this week. A series of softer economic releases, from GDP to housing prices, reinforced signs that the central bank’s three rate hikes earlier this year began to filter through the economy. Market pricing now ruled out a move at the June meeting, while bets for an August rate hike have eased sharply to around 35%, down from more than 80% a month ago. The May CPI report due on June 24, will be pivotal as policymakers look for clearer evidence that price pressures remain strong. Meanwhile, the US and Iran reportedly reached a peace agreement, sending oil prices lower, easing inflation and rate-hike expectations. The deal, set to be signed in Switzerland on June 19, includes sanctions relief for Iran, lifting blockades, and dismantling Tehran’s nuclear program.
2026-06-15