FX.co ★ AUS 10-Year Yield Steady After RBA Minutes

Australia’s 10-year government bond yield remained steady at approximately 4.30% as investors analyzed insights from the latest Reserve Bank of Australia (RBA) policy meeting minutes. These minutes highlighted the central bank's strong inclination towards a 25 basis point reduction considered for August and suggested the likelihood of additional easing measures over the following year. Policymakers observed that inflation is edging closer to the mid-point of the 2–3% target band and indicated that maintaining full employment with low inflation might necessitate further rate cuts. The board deliberated on a cautious strategy in contrast to the risk of diminished growth or subdued inflation, emphasizing that the pace of easing would be contingent on data received during each meeting. Current market sentiment anticipates that the bank will hold steady in September and possibly ease policies in November, with projections suggesting rates could decline toward 3.10% or potentially down to 2.85%. Focus now shifts to the forthcoming monthly Consumer Price Index (CPI) report expected later this week, anticipated to reveal accelerated inflation and bolster expectations of a temporary policy pause before any additional easing.