AUS 10Y Yield Falls on Soft Jobs Report
Australia’s 10-year government bond yield fell to around 5.2%, hitting a five-week low after a surprisingly soft jobs report prompted traders to scale back bets on further rate hikes. The economy shed 39,300 jobs, the biggest monthly fall since February last year, defying expectations for a 20,000 gain. The jobless rate also stayed at a five-year high of 4.7%, above the 4.6% forecast, with the previous month revised up from an initial 4.6% reading. The figures suggested the labor market may be loosening after the Reserve Bank of Australia raised its cash rate by 1 percentage point to 4.60% this year to rein in inflation, one of the most aggressive tightening cycles among developed economies. Markets now see less than a 20% chance of a November hike, down from 35% earlier, while the odds of a December move fell to 40% from 60%. A May 2027 hike carries the highest probability at 80%. Attention now turns to Q3 CPI data due later this month for further clues on the policy outlook.
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2%, hitting a five-week low after a surprisingly soft jobs report prompted traders to scale back bets on further rate hikes. The economy shed 39,300 jobs, the biggest monthly fall since February last year, defying expectations for a 20,000 gain. 6% reading. 60% this year to rein in inflation, one of the most aggressive tightening cycles among developed economies.
Markets now see less than a 20% chance of a November hike, down from 35% earlier, while the odds of a December move fell to 40% from 60%. A May 2027 hike carries the highest probability at 80%. Attention now turns to Q3 CPI data due later this month for further clues on the policy outlook.