Australia 10Y Yield Rises to 9-Week High
2026-07-22 01:20
By
Joshua Ferrer
1 min. read
Australia’s 10-year government bond yield rose toward 5%, reaching a nine-week high as broader risks to global energy supplies fueled inflation concerns.
US-Iran fighting continued near the Strait of Hormuz, while Houthi militants threatened shipping in the Red Sea.
Supply concerns also spread to the Black Sea after attacks targeted a key export route for Kazakhstan's crude.
The resulting surge in oil prices reinforced expectations that the Reserve Bank of Australia could tighten policy further after raising the cash rate three times to 4.35%, with markets pricing an 80% chance of another increase by December.
Investors now await Australia's June employment report on Thursday, with forecasts pointing to a 15,000 rise in employment and an unchanged 4.4% unemployment rate.
Inflation data for the second quarter are also due next week, with core inflation expected to accelerate to 3.7% annually from 3.5%, well above the RBA's target band, reinforcing the risk of another rate hike.