The yield on Australian 10-year government bonds were close to 1.8% in the second half of October, a level not seen in almost seven months, as the case for tighter monetary policies strengthens globally. Traders monitored neighboring New Zealand’s decade high inflation rate to draw expectations to what might happen in Australia, raising prospects for interest rate hikes as soon as mid-2022, despite the Reserve Bank of Australia pledging hikes only before 2024. Additionally, minutes from the RBA’s October meeting revealed policymakers expect the economy to return to the recovery path in the current quarter, and reach pre-Delta wave growth levels in mid-2022. Meanwhile, Victoria and New South Wales eased travel restrictions for fully-vaccinated residents, allowing more mobility between Australia’s largest cities, Sydney and Melbourne.
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 October of 2021.
The Australia Government Bond 10Y is expected to trade at 1.74 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 1.98 in 12 months time.