| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 3.82 | 3.89 | -0.07 |
| Australia 10-year bond* (%) | 4.13 | 4.20 | -0.07 |
| Australia 20-year bond* (%) | 4.51 | 4.51 | 0.00 |
| United States 2-year bond (%) | 4.71 | 4.70 | 0.01 |
| United States 10-year bond (%) | 4.22 | 4.24 | -0.02 |
| United States 30-year bond (%) | 4.35 | 4.40 | -0.05 |
* Implied yields from June 2024 futures. As at 14 June.
LOCAL MARKETS
Australian Commonwealth Government bond yields fell with the exception of ultra-long yields which remained unchanged. There were no notable economic data reports on the day.
The next RBA Board meeting ends on 18 June. June futures imply an average cash rate of 4.315% for the month, thus pricing a near-zero probability of a 25bp rate cut at the meeting. May 2025 futures imply 4.005%, 32bps below the current cash rate, thus pricing in at least one 25bp cut between now and next May.
US MARKETS
Short-term US Treasury bond yields crept a little higher while longer-term yields fell. The University of Michigan’s consumer sentiment index and May Import Price Indices were released.
The next FOMC meeting ends on 31 July. August federal funds futures implied an average cash rate of 5.295% for the month and thus a small chance of a 25bp rate cut at the meeting. However, June 2025 contracts implied 4.29%, 104bps less than the current rate.
