19.02.202601:31:29UTC+00Australia 10-Year Yield Rises After Jobs Data

Australia’s 10-year government bond yield climbed to about 4.77%, extending its rebound from a four-week low, after stronger-than-expected labor market data reinforced the Reserve Bank of Australia’s view that the economy can absorb tighter policy without a sharp rise in unemployment. The jobless rate held at 4.1% in January, beating the 4.2% consensus forecast, while total employment rose by nearly 18,000, entirely in full-time roles, and the previous month’s hiring figures were revised higher. This followed still-elevated annual wage growth in the fourth quarter, underscoring persistent labor market tightness and the inflation pressures confronting the RBA after this month’s rate increase. The central bank has also recently lifted its core inflation projections by 0.5 percentage points, and now expects inflation to remain above its target band through this year. In response, traders have increased wagers on another rate hike in May, although most economists anticipate the RBA will leave the cash rate unchanged at its March meeting.