FX.co ★ AUS 10-Year Yield Hovers Near 6-Month High

The yield on Australia's 10-year government bonds has increased to 4.47%, approaching a six-month high, as market participants evaluate remarks by RBA Assistant Governor Sarah Hunter. Hunter noted that the central bank's decision-making would not be swayed by a single month's data when considering if the prevailing 3.6% cash rate is effective in steering inflation towards the RBA's target range of 2–3%. She further highlighted that while the central bank is investigating the economy's proximity to full employment, the labor market remains too constrained for inflation to comfortably align with the target. Recent data, released on Wednesday, revealed that annual wage growth remained steady at 3.4% during the third quarter, aligning with market expectations and indicating sustained robustness in the job market. Despite this, market predictions currently suggest a 56% probability of one last rate cut by the Reserve Bank of Australia by May of the following year.