09.01.202604:04:39UTC+00Australia 10-Yr Yield Hovers Near 1-Month Lows

The yield on Australia's 10-year government bonds rose to 4.67%, staying near its lowest in over a month, as investors reevaluated the Reserve Bank's future interest-rate policies. Weaker-than-expected inflation figures for November have strengthened the argument for the Reserve Bank of Australia (RBA) to maintain steady interest rates in the short term. Nonetheless, RBA Deputy Governor Andrew Hauser indicated on Thursday that most of the data met the central bank's forecasts, noting that the quarterly core inflation rate is anticipated to be slightly above the 3.2% reported in November. Attention is now turning to the complete fourth-quarter inflation report, expected later this month, which is likely to play a more pivotal role in the RBA's forthcoming policy decisions. Currently, traders are estimating a 24% possibility of a rate increase in February, with an anticipated tightening of approximately 30 basis points by 2026, which equates to just over one rate hike.