FX.co ★ AUS 10-Year Yield Edges Lower

Australia's 10-year government bond yield has decreased to 4.42%, continuing its decline from the prior session. This occurs despite the Reserve Bank signaling a cautious approach to monetary policy. Minutes from the RBA's recent meeting reveal that policymakers would only contemplate reducing interest rates if there is a significant downturn in the labor market. The board observed that current monetary conditions are "slightly restrictive," yet they also admitted that this might no longer be the case, limiting the potential for further easing. Today’s data indicated that annual wage growth remained steady at 3.4% for the third quarter, aligning with expectations and affirming the perception that the labor market is still tight. However, the markets currently predict a 50% probability of one last rate cut from the RBA by May of next year.