23.02.202602:36:26UTC+00AUS 10Y Yield Heads Back to 4-Week Low

Australia’s 10-year government bond yield declined to around 4.72%, edging back toward a four-week low as markets weighed the risks from renewed tariff tensions. President Donald Trump announced an increase in global tariffs from 10% to 15% after the Supreme Court struck down much of his earlier trade agenda. In response, Australian Trade Minister Don Farrell said on Sunday that he is working with the Australian embassy in Washington to assess the implications and consider all available options.

Further declines in yields were limited by a hawkish outlook from the Reserve Bank of Australia. Robust recent employment figures and solid Q4 wage growth have reinforced the RBA’s view that the economy can withstand tighter monetary policy without triggering significant job losses, underscoring persistent labor-market tightness and sustained inflationary pressures. This comes on the heels of the RBA’s rate hike earlier this month. Investors are now looking ahead to January inflation data, due later this week, for additional policy signals.