Australia 10-Year Government Bond Yield
Australia's 10-year government bond yield rose slightly to around 3.94% as investors digested data showing a slowdown in inflation. Data on Wednesday revealed that Australia's headline inflation fell to a three-year low of 2.7% in August from 3.5% in the previous month, and slightly below market forecast of 2.8%.
This report came a day after the Reserve Bank of Australia decided to maintain the official cash rate at 4.35% for the seventh consecutive time. The RBA reiterated that policy would have to be sufficiently restrictive to ensure inflation returns to its 2-3% target band.
Governor Michele Bullock also indicated that interest rates will remain on hold for the time being. This hawkish stance makes the RBA an outlier among major central banks, such as the US Federal Reserve, which has started loosening policy to preserve the strength of its economy. (ayu)
Sourc : Trading Economics