Australia 10Y Yield Rises as RBA Rate Hike Looms

2026-11-02 04:11 By Czyrill Jean Coloma 1 min. read

Australia’s 10-year government bond yield rose above 5.1%, rebounding from a two-month low in the previous session as investors positioned ahead of the Reserve Bank of Australia's monetary policy decision.

The RBA is expected to raise its cash rate by 25 bps to 4.85%, its highest level in nearly two decades and marking its fifth rate hike this year.

The widely expected decision reinforced policymakers’ focus on bringing inflation under control after the annual inflation rate rose to 3.9% in Q3, well above the RBA’s 2–3% target range, while underlying inflation remained elevated at 3.7%.

Meanwhile, Governor Michele Bullock described the labour market as “a little tighter” than the RBA had expected, despite the unemployment rate remaining at a five-year high of 4.7% in September.

On the economic front, Australia’s Melbourne Institute Monthly Inflation Gauge increased by 0.5% month-on-month in October 2026, picking up from 0.3% in September and marking its fourth consecutive monthly gain.



News Stream
Australia 10Y Yield Rises as RBA Rate Hike Looms
Australia’s 10-year government bond yield rose above 5.1%, rebounding from a two-month low in the previous session as investors positioned ahead of the Reserve Bank of Australia's monetary policy decision. The RBA is expected to raise its cash rate by 25 bps to 4.85%, its highest level in nearly two decades and marking its fifth rate hike this year. The widely expected decision reinforced policymakers’ focus on bringing inflation under control after the annual inflation rate rose to 3.9% in Q3, well above the RBA’s 2–3% target range, while underlying inflation remained elevated at 3.7%. Meanwhile, Governor Michele Bullock described the labour market as “a little tighter” than the RBA had expected, despite the unemployment rate remaining at a five-year high of 4.7% in September. On the economic front, Australia’s Melbourne Institute Monthly Inflation Gauge increased by 0.5% month-on-month in October 2026, picking up from 0.3% in September and marking its fourth consecutive monthly gain.
2026-11-02
Australia 10Y Yield Hits 2-Month 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.
2026-10-30
Australia 10Y Bond Yield Hits 8-week Low
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.
2026-10-30