Australia 10Y Bond Yield Hits 8-week Low

Australia's 10-year government bond yield fell to around 5.1%, hitting an eight-week low as global bond markets rallied on increased safe-haven demand following a selloff in technology stocks. Disappointing earnings from major tech companies renewed concerns over the sustainability of heavy artificial intelligence investments, prompting a rally in US Treasuries that spilled over into the Australian bond market. A suspected hack of Binance, the world's largest cryptocurrency exchange, added to broader risk aversion. The decline came despite expectations of further policy tightening by the Reserve Bank of Australia. Hotter-than-expected inflation data and hawkish comments from the RBA’s top officials have led markets to price in an 83% chance of a rate hike at the central bank's November 3 meeting, up from 25% weeks ago. The benchmark yield is now headed for its first monthly decline since June amid souring sentiment around AI-linked equities and the prolonged Middle East tensions.

Australia 10 Year Government Bond Yield decreased to 5.12%, the lowest since September 2026. Over the past 4 weeks, Australia 10Y Bond Yield lost 27.80 basis points, and in the last 12 months, it increased 81.30 basis points.

Australia’s 10-year government bond yield rose toward 5.2%, climbing off a recent seven-week low after hotter-than-expected inflation data boosted expectations for a fifth rate hike this year. Monthly CPI rose 0.8% in September, the biggest increase in six months and above the expected 0.7%, while the annual pace jumped to 4.3% from 4.0% in August, also exceeding forecasts of 4.2% and hitting its highest since March. The monthly core inflation rose 0.3%, matching expectations, while the annual rate edged up to 3.6% from 3.5%, also in line with forecasts. The pickup pushed inflation further above the RBA’s 2–3% target range, boosting bets on a hike at the November 3 meeting. The data followed remarks from RBA Governor Michele Bullock earlier on Wednesday, when she warned that upside risks to inflation were materializing and price pressures would likely exceed the central bank’s August forecast. Traders raised the odds of a November hike to 88%, up from 60% before the inflation print.