Australia 10-Year Bond Yield Tracks US Yields Lower

Australia's 10-year government bond fell below 4.3%, mirroring a decline in US bond yields after some Federal Reserve officials signaled a gradual pace for future interest rate cuts.

Investors also scaled back their bets on further jumbo rate cuts by the Federal Reserve at its remaining meetings this year, following stronger-than-expected US consumer and producer price data.

Domestically, the Reserve Bank of Australia’s September meeting minutes indicated a shift towards a more dovish outlook, softening the guidance provided in August. However, RBA Deputy Governor Andrew Hauser clarified that it would be premature to interpret this as a definitive dovish turn, stressing that the central bank’s battle against inflation is far from over.

Attention now shifts to an upcoming speech by RBA's Sarah Hunter on Wednesday and the labor market data on Thursday, which could provide further insight into the central bank’s monetary policy path.