FX.co ★ Australia 10-Year Yield Falls on Weak Jobs Report

Australia's 10-year bond yield decreased by 7 basis points to 4.16%, marking its lowest point since early July. This decline followed a jobs report that was weaker than anticipated, reinforcing the likelihood of an upcoming interest rate reduction. The unemployment rate increased to 4.5% in September, its highest in nearly four years and surpassing market expectations of 4.3%. Although total employment rose by 14.9 thousand from the previous month, it fell short of the projected 17 thousand increase. Consequently, this spurred investors to raise the likelihood of a November rate cut by the Reserve Bank of Australia to 76%, up from less than 50% prior to the release of the data. This disappointing outcome stands in contrast to earlier remarks from RBA Governor Michele Bullock, who had observed that the labor market might have been "a bit tight", and had indicated that, in conjunction with higher-than-expected inflation, the central bank was considering whether further monetary easing was necessary.