FX.co ★ Australia 10-Year Yield Holds Near 1-Month Lows

Australia's 10-year government bond yield remained steady at 4.66% on Thursday, hovering near its lowest point in over a month. Investors are closely analyzing the Reserve Bank of Australia's (RBA) policy direction. Recent data indicates robust household spending in November, hinting at stronger retail volumes for the fourth quarter and a boost in economic growth, potentially supporting arguments for further policy tightening. This analysis follows a slowdown in November's inflation, though RBA Deputy Governor Andrew Hauser noted that most of these figures aligned with the central bank’s projections. Current market sentiment suggests a 27% probability of a rate hike in February, increasing to approximately 76% by May. Investors are now eagerly anticipating the upcoming December jobs report and the complete fourth-quarter inflation data to gain deeper insights into the RBA's future actions.