FX.co ★ Australia 10-Year Yield Rises Ahead of RBA Decision

Australia's 10-year government bond yield has climbed to approximately 4.42% as investors anticipate the Reserve Bank of Australia's upcoming monetary policy decision, all while processing recent economic data. The central bank is widely expected to maintain its policy rate at 4.1% later today, as it evaluates the potential consequences of US tariffs on the Australian economy. Attention is also directed towards Governor Michele Bullock's press conference post-decision. In the meantime, recent economic indicators have revealed a more moderate growth in retail sales, although noting a second consecutive monthly increase, and the factory sector experiencing its fastest expansion since October 2022. These positive data points have strengthened the perception of the Australian economy's robustness, following GDP figures that slightly surpassed expectations and bolstered the central bank's cautious approach.