23.04.202601:14:13UTC+00AUS 10Y Yield Stuck in Sideways Range

Australia’s 10-year government bond yield hovered around 5%, holding in a sideways range near multi-decade highs as investors continued to weigh inflation risks stemming from the war in the Middle East. At the same time, robust domestic PMI data lent some support to sentiment. Flash surveys signaled a modest rebound in activity, with both manufacturing and services returning to expansion after sharp weakness in March, pushing the composite index back above the growth threshold. This improvement indicated that domestic demand remained resilient despite persistent disruptions in the Strait of Hormuz. The Reserve Bank of Australia is widely expected to raise interest rates next month, as elevated energy prices and inflation risks persist amid Iran’s continued control of the key shipping route, which has restricted international traffic and reportedly involved firing on commercial vessels. The United States has also maintained its blockade of Iranian ports, while diplomatic efforts have made little headway, with Tehran indicating it does not intend to engage in talks.