FX.co ★ Australia’s 10-Year Yield Rises After PMI Data

Australia's 10-year government bond yield increased to roughly 4.45% as strong private sector activity data supported the Reserve Bank of Australia's (RBA) cautious stance on monetary policy. In March, the manufacturing sector experienced its fastest growth in over two years, complemented by a rise in the services sector. This follows robust GDP data released earlier this month, where both annual and quarterly figures exceeded projections. The solid economic performance is consistent with the RBA's hawkish tone signaled last week. Assistant Governor Sarah Hunter emphasized the bank's more conservative approach compared to market expectations regarding further rate cuts, highlighting the importance of US policy decisions and their potential effects on Australian inflation. The outlook for rate cuts is split, with some analysts predicting a change as early as May, while others anticipate it could occur in July or August.