Australia 10Y Yield Moves Near 2011 Highs

2026-09-08 06:05 By Joshua Ferrer 1 min. read

Australia’s 10-year government bond yield traded around 5.2%, near its highest level since mid-2011 as markets increasingly priced in further tightening by the Reserve Bank amid persistent inflation pressures.

RBA Assistant Governor Sarah Hunter said policymakers have limited tolerance for inflation remaining elevated and could raise rates for a fourth time this year if price pressures prove stronger than expected.

Markets now see a 68% chance of a 25-basis-point hike to 4.60% at the September 29 meeting, up from below 10% a month ago, while the odds of rates reaching 4.85% next year have climbed to 60%.

The hawkish repricing widened the 10-year yield’s premium over US Treasuries to 43 basis points, the most in three months.

Still, fresh surveys pointed to growing pressure on the economy from higher borrowing costs, fuel prices and the weakening housing market.

NAB’s business conditions index fell to a six-year low in August, while consumer sentiment weakened sharply in September.



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Australia 10Y Yield Moves Near 2011 Highs
Australia’s 10-year government bond yield traded around 5.2%, near its highest level since mid-2011 as markets increasingly priced in further tightening by the Reserve Bank amid persistent inflation pressures. RBA Assistant Governor Sarah Hunter said policymakers have limited tolerance for inflation remaining elevated and could raise rates for a fourth time this year if price pressures prove stronger than expected. Markets now see a 68% chance of a 25-basis-point hike to 4.60% at the September 29 meeting, up from below 10% a month ago, while the odds of rates reaching 4.85% next year have climbed to 60%. The hawkish repricing widened the 10-year yield’s premium over US Treasuries to 43 basis points, the most in three months. Still, fresh surveys pointed to growing pressure on the economy from higher borrowing costs, fuel prices and the weakening housing market. NAB’s business conditions index fell to a six-year low in August, while consumer sentiment weakened sharply in September.
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