FX.co ★ AUS 10-Year Yield Steady as Traders Assess Jobs Data

The yield on Australia's 10-year government bonds remained stable at 4.21% as investors evaluated the latest labor market report. Employment figures showed a decline of 5,400 jobs in August, contrasting with an upwardly revised increase of 26,500 in July, and defying predictions of a 22,000 rise. Nevertheless, the unemployment rate held steady at 4.1%, aligning with expectations and remaining relatively low by historical measures. This mixed set of data has not significantly shifted expectations regarding monetary policy, as markets continue to predict that the Reserve Bank of Australia (RBA) will maintain current interest rates this month. There is, however, a 70% probability being priced in for a rate cut in November. Thus far, the RBA has exercised caution with policy relaxation, implementing just three cuts this year, primarily guided by quarterly inflation metrics. On Tuesday, Assistant Governor Sarah Hunter noted that the bank is nearing its objectives for both inflation and employment, though she acknowledged the presence of risks. In contrast, the US Federal Reserve reduced interest rates as anticipated on Wednesday and signaled a continued trajectory of rate cuts for the remainder of the year.