| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 3.53 | 3.54 | -0.01 |
| Australia 10-year bond* (%) | 3.92 | 3.94 | -0.02 |
| Australia 20-year bond* (%) | 4.29 | 4.32 | -0.03 |
| United States 2-year bond (%) | 4.07 | 4.05 | 0.02 |
| United States 10-year bond (%) | 3.87 | 3.89 | -0.02 |
| United States 30-year bond (%) | 4.12 | 4.14 | -0.02 |
* Implied yields from September 2024 futures. As at 19 August.
LOCAL MARKETS
Australian Commonwealth Government bond yields declined across a flatter curve, vaguely in line with the downward movements of US Treasury yields on Friday night. There were no domestic data releases of note on the day.
The next RBA Board meeting ends on 24 September. September futures implied an average cash rate of 4.325% for the month, thus pricing in a small chance of a 25bp cut at the meeting. July 2025 futures implied 3.56%, 78bps below the current cash rate, thus pricing in three 25bp cuts and a small chance of a fourth one between now and next July.
US MARKETS
Short-term US Treasury bond yields increased modestly while longer-term yields declined. Data releases were limited to the July reading of The Conference Board Leading Index.
The next FOMC meeting ends on 18 September. September federal funds futures implied an average cash rate of 5.20% for the month and thus a 100% probability of at least a 25bp rate cut at the meeting. July 2025 contracts implied 3.56%, 177bps less than the current rate.
