FX.co ★ Australia 10-Year Bond Yield Declines

Australia's 10-year government bond yield has declined to approximately 4.24%, trending towards a six-week low as rising Middle East tensions reduce investors' risk appetite. The ongoing conflict between Israel and Iran has intensified, with new attacks occurring as the situation enters its fifth day. Iran has reportedly appealed to several nations to urge the United States for an immediate ceasefire, but Israel has shown no inclination to agree. On the domestic front, attention is centered on crucial employment data set to be released later this week. The labor market has demonstrated unexpected strength, and another robust report could challenge the forecast for a rate cut next month, which currently stands at a 75% probability. This data will be scrutinized following a series of underwhelming economic indicators, including weaker-than-anticipated first-quarter GDP growth, subdued business activity in May, and cautious consumer spending despite last month's rate reduction.