FX.co ★ Australia 10-Year Yield Edges Down

Australia’s 10-year government bond yield dipped to 4.35% on Friday, continuing its decline from the previous day. This comes despite a series of positive economic indicators this week, which have bolstered the belief that the Reserve Bank of Australia is likely to maintain its current interest rates when it meets later this month. Earlier this week, it was revealed that the Australian economy outperformed expectations in the June quarter, achieving its most accelerated annual growth rate in nearly two years, primarily fueled by robust household consumption. Additionally, Australia saw a widening goods trade surplus in July, attributed to an increase in exports and a decrease in imports, alongside a surge in household spending. RBA Governor Michele Bullock has cautioned that future interest rate cuts might be improbable if the uptick in consumer spending continues at its current pace. Meanwhile, global investors are anticipating the upcoming US non-farm payrolls report, as there is a growing consensus that the Federal Reserve might reduce rates later this month.