| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 3.49 | 3.53 | -0.04 |
| Australia 10-year bond* (%) | 3.89 | 3.94 | -0.05 |
| Australia 20-year bond* (%) | 4.32 | 4.35 | -0.03 |
| United States 2-year bond (%) | 3.65 | 3.74 | -0.09 |
| United States 10-year bond (%) | 3.71 | 3.73 | -0.02 |
| United States 30-year bond (%) | 4.02 | 4.02 | 0.00 |
* Implied yields from September 2024 futures. As at 6 September.
LOCAL MARKETS
Australian Commonwealth Government bond yields again fell moderately across the curve, in a vaguely similar fashion to the downward movements of US Treasury yields on Thursday night. Domestic economic reports for the day were limited to July housing finance approval figures.
The next RBA Board meeting ends on 24 September. September futures implied an average cash rate of 4.33% for the month, thus pricing in a near-zero probability of a 25bp cut at the meeting. August 2025 futures implied 3.41%, 93bps below the current cash rate, or three 25bp cuts and a very good chance of a fourth one between now and next August.
US MARKETS
US Treasury bond yields generally fell across a steeper positive curve. Data releases were limited to August non–farm payroll data.
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. August 2025 contracts implied 2.94%, 239bps less than the current rate.
