FX.co ★ Australia 10-Year Yield Holds Above 4.3%

Australia's 10-year government bond yield remained stable at 4.31% on Friday, following a 4-basis-point increase in the previous session driven by robust preliminary Purchasing Managers' Index (PMI) data. The country's private sector experienced its fastest growth since April 2022, with the composite PMI climbing to 54.9 in August, compared to 53.8 in July. This growth was supported by strong performances in both the manufacturing sector, which rose to 52.9 from 51.3, and the services sector, which grew to 55.1 from 54.1. On the monetary policy front, the Reserve Bank of Australia recently reduced its cash rate to 3.60% and indicated the possibility of further cuts should inflation align with projections. Financial markets are nearing full anticipation of a 25 basis point rate reduction by the central bank in November. Globally, attention is focused on Federal Reserve Chair Jerome Powell's upcoming address at the Jackson Hole Symposium later today, as investors seek insights into the future direction of U.S. monetary policy.