FX.co ★ Australia’s 10-Year Bond Yield Eases

Australia's 10-year government bond yield declined to approximately 4.41%, following a recent session where it reached a peak unmatched in over seven weeks. This shift comes as investors shift their attention to forthcoming employment data. The market anticipates the creation of 20,000 new jobs, with the unemployment rate expected to stay constant at 4.1%. The labor market's unexpected robustness has played a significant role in the Reserve Bank of Australia's measured approach to monetary policy easing. Recently, the RBA kept its cash rate at 3.85%, surprising those who predicted a reduction to 3.60%. Presently, there's an 80% likelihood of a rate cut in August based on market expectations, contingent largely on the second-quarter Consumer Price Index report, due at the end of July. Simultaneously, in the United States, inflation data indicated that consumer prices increased to a four-month high in June, prompting traders to temper their expectations for imminent Federal Reserve rate cuts.