FX.co ★ Australia 10-Year Yield Edges Higher

Australia's 10-year government bond yield edged up to 4.22% as investors awaited significant local employment data set for release on Thursday, which could influence the Reserve Bank of Australia's (RBA) stance on interest rates. Currently, the market predicts only a 20% probability of a rate reduction at the RBA's meeting this month. Expectations for a potential cut in November, which seemed nearly certain only a few weeks prior, have now diminished to about 70% following a spate of robust domestic economic data. Meanwhile, Assistant Governor Sarah Hunter remarked on Tuesday that the RBA is "quite close" to aligning inflation with its 2-3% target range. She emphasized that the central bank is vigilantly observing the core strength of consumer demand as it aims to maintain the economy as close to full employment as possible. Globally, all eyes are on the United States Federal Reserve's policy decision, expected later in the day, where a quarter-point rate cut is broadly anticipated.