The yield on the Australian 10-year government bond yield fell to a 4-week low of 3.55%, as fears of a possible global recession led investors to flock to safe government bonds ahead of tomorrow’s domestic monetary policy decision. The RBA hiked the key interest rate, or cash rate in May and June by a total 75 bps to 0.85%, after having held rates near historic lows. Markets expect a 50 bps hike in cash rate this month, with RBA governor pushing back against an outsized 75 basis-point move amid signs of consumer fatigue. Weekly card spending data from Australia’s major banks slowed in June after months of upbeat growth while private consumer surveys also indicated a pull-back in spending.
Historically, the Australia Government Bond 10Y reached an all time high of 16.50 in August of 1982. Australia Government Bond 10Y - data, forecasts, historical chart - was last updated on July of 2022.
The Australia Government Bond 10Y is expected to trade at 3.71 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4.10 in 12 months time.