Australia 10-Year Yield Tumbles on Weak Jobs Report

2025-10-16 02:36 By Judith Sib-at 1 min. read

Australia’s 10-year bond yield declined to 4.10%, hitting its lowest level since early May, after a weaker-than-expected jobs report supported the case for a near-term interest rate cut.

The unemployment rate rose to 4.5% in September, the highest in nearly four years and above expectations of 4.3%.

Employment grew by 14.9 thousand from the previous month, but it fell short of forecasts for a 17 thousand gain.

This prompted investors to significantly increased their bets on further easing by the Reserve Bank of Australia.

Market pricing now implies an 85% chance of a 25bps cut in November, compared to 50% prior to the data release.

The report came shortly after RBA Governor Michele Bullock commented that the labor market was “possibly a bit tight”, and that, along with higher-than-expected inflation, the central bank was weighing whether further easing would be necessary.

Bond yields also moved lower as investors sought safe-haven assets amid escalating US-China trade tensions.



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