FX.co ★ Australia 10-Year Yield Stabilizes After Jobs Report

Australia's 10-year government bond yield steadied at 4.20% on Thursday, ending a three-day decline as investors evaluated the latest labor market data. In July, net employment increased by 24,500, significantly surpassing June's modest 1,000 gain, yet slightly below the anticipated 25,000 rise. The unemployment rate dipped to 4.2% from 4.3% in the previous month, a four-year high, aligning with forecasts. This data alleviated worries about an imminent sharp slowdown in the labor market, indicating a reduced urgency for the Reserve Bank of Australia to follow this week's interest rate cut with another in September. On Tuesday, the RBA lowered rates as predicted but expressed caution regarding the economic outlook. As a result, markets predict a three-month pause before any further rate reductions. Meanwhile, wage pressures remain moderate, with annual pay growth steady at 3.4% in the second quarter, well below the 2023 peak of 4.2%.