| Close | Previous Close | Change | |
|---|---|---|---|
| Australian 3-year bond (%) | 3.404 | 3.455 | -0.051 |
| Australian 10-year bond (%) | 4.324 | 4.292 | 0.032 |
| Australian 30-year bond (%) | 4.992 | 4.968 | 0.024 |
| United States 2-year bond (%) | 3.874 | 3.868 | 0.006 |
| United States 10-year bond (%) | 4.356 | 4.346 | 0.010 |
| United States 30-year bond (%) | 4.871 | 4.862 | 0.009 |
Overview of the Australian Bond Market
Australian government bond yields dipped, with the 10-year yield down 3 basis points to 4.31%, and the 15-year down 3 basis points to 4.65%, following the RBA’s steady 3.85% rate.
The 2-year yield fell 1 basis point to 3.39%, reflecting short-term stability. The RBA’s hold, defying earlier cut expectations, continues to influence yields. Markets price four cuts (100 basis points) by mid-2026, with the timeline under review.
Global yields were stable, with focus on the OBBBA’s fiscal impact and the August 1 tariff deadline. The AUD/USD rose 0.19% to 0.6548, supported by commodity strength.
Overview of the US Bond Market
The yield on the benchmark 10-year Treasury note settled at 4.35%, up 1 basis point daily. The 30-year yield held at 4.87%, up 1 basis point, as markets adjusted to the OBBBA’s fiscal impact.
The 2-year yield rose to 3.87%, up 1 basis point, while the 5-year yield increased to 3.93%, up 1 basis point. The yield curve steepened slightly, reflecting cautious optimism amid stimulus. Market expectations price two Fed cuts by year-end, favoring September, with the August 1 tariff deadline looming.
