FX.co ★ Australia 10-Year Bond Yield Rebounds

Australia's 10-year government bond yield increased to approximately 4.18%, recovering from the previous day's decline, as market participants analyzed new economic data. The country's trade goods surplus expanded significantly to A$6.9 billion in March, surpassing forecasts of A$3.9 billion. This was driven by a 7.6% increase in exports while imports saw a 2.2% decline. Moreover, factory activity showed continued growth in April, buoyed by an uptick in new work orders. However, Wednesday's data revealed a decline in core inflation to 2.9% in the first quarter from 3.3%, bringing it within the Reserve Bank's target range of 2-3% for the first time since late 2021. This development has strengthened the anticipation that the central bank may reduce its cash rate by 25 basis points to 3.85% later this month.