Australia 10Y Yield Climbs Above 5%

2026-08-18 02:36 By Joshua Ferrer 1 min. read

Australia’s 10-year government bond yield climbed toward 5.1%, moving near multi-month highs and tracking a rally in global bond yields.

Long term borrowing costs in the US, France, and Germany have surged to their highest level in at least a decade on mounting concerns over massive government spending and persistent inflationary pressures.

In Australia, bond supply is in focus, with the government selling a new 2038 bond that is expected to attract strong investor demand.

Alphabet is also preparing its first Australian debt sale, potentially the country’s largest-ever corporate bond issuance and add to supply in the local debt market.

Meanwhile, the Reserve Bank of Australia held its interest rate unchanged at 4.35% last week after three rate hikes earlier this year.

Investors now await Thursday’s jobs report for further clues on the policy outlook, with employment expected to rise by 15,000 in July after a strong 76,300 gain in June, while unemployment is forecast to remain at 4.4%.



News Stream
Australia 10Y Yield Climbs Above 5%
Australia’s 10-year government bond yield climbed toward 5.1%, moving near multi-month highs and tracking a rally in global bond yields. Long term borrowing costs in the US, France, and Germany have surged to their highest level in at least a decade on mounting concerns over massive government spending and persistent inflationary pressures. In Australia, bond supply is in focus, with the government selling a new 2038 bond that is expected to attract strong investor demand. Alphabet is also preparing its first Australian debt sale, potentially the country’s largest-ever corporate bond issuance and add to supply in the local debt market. Meanwhile, the Reserve Bank of Australia held its interest rate unchanged at 4.35% last week after three rate hikes earlier this year. Investors now await Thursday’s jobs report for further clues on the policy outlook, with employment expected to rise by 15,000 in July after a strong 76,300 gain in June, while unemployment is forecast to remain at 4.4%.
2026-08-18
AUS 10Y Yield Rises to Multi-Week Highs
Australia’s 10-year government bond yield rose above 5%, trading near multi-week highs as the Reserve Bank reinforced a hawkish policy stance. The central bank held its cash rate unchanged at 4.35% for a second consecutive meeting last week, but Governor Michele Bullock said rates might need to rise again as the Strait of Hormuz remained closed and productivity growth stayed weak. RBA Assistant Governor Christopher Kent also said tighter monetary policy was working as designed, although its full effects on activity and inflation would take time. Markets priced around a 70% chance of a hike to 4.60% by early next year, likely marking the end of the tightening cycle. Attention now turns on Thursday’s jobs report, with forecasts pointing to a 15,000 increase in employment in July and a steady unemployment rate of 4.4%. Quarterly wages data are also due on Wednesday, while RBA Deputy Governor Andrew Hauser will also be speaking.
2026-08-13
Australia 10Y Yield Rises Above 5%
Australia’s 10-year government bond yield rose above 5%, moving back toward multi-week highs after the Reserve Bank kept its cash rate unchanged at 4.35% for a second consecutive meeting, as widely expected. The unanimous decision came as the central bank said the economy was slowing as expected under tighter financial conditions, while keeping the option of another rate hike if upside inflation risks materialize. Markets had also expected rates to remain unchanged after second-quarter inflation came in below forecasts and the housing market weakened more than policymakers had anticipated. The RBA has already raised rates three times this year, as stubborn inflation and higher energy costs continued to weigh on the outlook. Markets now price around a 40% chance of another hike this year, down from 50% before the decision. Attention now turns to Governor Michele Bullock, who is due to testify before parliament on Friday, while Assistant Governor Chris Kent is scheduled on Thursday.
2026-08-11