FX.co ★ Australia 10-Year Bond Yield Edges Higher

On Thursday, Australia's 10-year government bond yield slightly increased to 4.23%, despite trade data falling short of expectations. In April, the nation's trade surplus in goods narrowed to AUD 5.41 billion, down from a slightly revised figure of AUD 6.89 billion in March and missing market predictions of AUD 5.90 billion. This reduction in surplus was largely due to a 2.4% monthly drop in exports, hampered by weak overseas demand, while imports saw a 1.1% rise. Earlier this week, data indicated that the Australian economy grew by 1.3% in the first quarter, maintaining the growth rate of the previous quarter but missing the forecasted 1.5%. This modest growth, linked to decreased public spending, weaker consumer demands, and reduced exports, has strengthened expectations for further monetary easing by the Reserve Bank of Australia. Market predictions now suggest an 82% chance of a rate cut in July, an increase from the 77% probability before these data were released.