FX.co ★ Australia’s 10-Year Yield Hits 6-Month Low

Australia's 10-year government bond yield has decreased to approximately 4.13%, marking its lowest point since October, as part of a global downward trend prompted by increased risk aversion. This movement followed the United States' recent imposition of comprehensive tariffs, which led to retaliatory measures from major global economies and sparked fears of a global trade conflict that could potentially hamper economic growth. On the domestic front, the Reserve Bank of Australia decided to maintain its interest rates last week but removed its previously cautious stance regarding future rate cuts, attributing this shift to a slowdown in core inflation. Although Reserve Bank Governor Michele Bullock mentioned that the board did not deliberate on any moves for May, the likelihood of further rate cuts has risen. Current swap rates suggest a 90% probability of a 25 basis point cut in May, influenced by risks associated with the global trade tensions. Concurrently, reinforcing the robustness of the labor market, ANZ data indicated a 0.4% increase in Australian job advertisements for March, countering a slightly revised 1.3% decline noted in February.