Australia’s 10-year government bond yield fell about 5%, reaching its lowest level in ten weeks, after the Reserve Bank of Australia delivered policy guidance that was less hawkish than markets had anticipated, tempering expectations of further interest rate increases. On November 3, the central bank raised its cash rate by 25 basis points to 4.85%, but the 6–3 split decision—with three policymakers favoring no change—and the removal of explicit forward guidance on additional tightening signaled a possible pause in December. Governor Michele Bullock also noted that the Board would evaluate the impact of previous rate hikes before deciding on any further moves.
In addition, Democratic gains in the US midterm elections bolstered hopes for progress toward resolving the US-Iran conflict, contributing to a sharp decline in oil prices. The resulting easing of energy-related inflation concerns further supported the global downturn in bond yields.
