Australia’s 10-year government bond yield remained above 4.9%, hovering near a two-week high as markets balanced easing geopolitical risks in the Middle East against ongoing domestic cost-of-living pressures. Consumer sentiment deteriorated further, slipping deeper into pessimistic territory: the Westpac–Melbourne Institute Consumer Sentiment Index fell roughly 3% to 80.6 in June, its fourth decline this year and one of the weakest readings in decades.
Persistently high living costs continue to weigh heavily on household finances, and the earlier temporary fuel tax reduction delivered only modest and short-lived relief. Market attention is now turning to next week’s Reserve Bank of Australia policy meeting, where investors generally expect the cash rate to be maintained at its current level.
Globally, risk appetite improved slightly after Iran and Israel agreed to halt hostilities. Nonetheless, no formal peace agreement has been reached, and the Strait of Hormuz remains effectively closed, sustaining concerns over global inflationary pressures.
