21.08.202503:07:58UTC+00Australia 10-Year Yield Extends Decline

Australia's 10-year government bond yield experienced a decline, reaching 4.26% on Thursday, continuing the downward trend from the previous day as market participants assessed recent local economic indicators. Notably, Australia's private sector output showed its most rapid expansion since April 2022, driven by robust growth in both the manufacturing and services sectors. Simultaneously, consumer inflation expectations fell to a five-month low of 3.9% in August, down from 4.7% in July, suggesting a decrease in price pressures. In terms of monetary policy, the Reserve Bank of Australia recently reduced the cash rate by 25 basis points to 3.60%. However, it maintained a cautious stance regarding the future economic outlook, leading to expectations of a three-month hiatus before any additional rate reductions. Market predictions suggest that the RBA might implement a more significant 50 basis point cut, potentially as soon as November. Globally, attention turned to Federal Reserve Chair Jerome Powell's upcoming address at the Jackson Hole Symposium for insights into the direction of U.S. interest rates. Additionally, investors remained watchful of a potential meeting between Russia and Ukraine, which could impact risk sentiment.