FX.co ★ Australia 10-Year Yield Moves Higher

Australia's 10-year government bond yield is approaching 4.40%, nearing the peak observed almost four weeks ago, as investors absorb the latest inflation statistics. The Melbourne Institute's Monthly Inflation Gauge rose by 0.4% in September, recovering from a 0.3% decline in August. This indicates potential persistence of inflationary pressures in the third quarter. These figures underscore the ongoing challenge of curbing price growth, despite the Reserve Bank of Australia's (RBA) efforts to contain inflation within its target range of 2–3%. The RBA maintained its cash rate at 3.6% in September but acknowledged ongoing price pressures, particularly in services, amid a constrained labor market. Although the majority of economists anticipate a rate cut in November followed by another in 2026, market sentiment remains guarded, with only a roughly 40% probability of action next month factored into pricing. Investors are now focused on forthcoming comments from RBA officials this week for additional insight into future policy directions.