| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 3.93 | 3.97 | -0.04 |
| Australia 10-year bond* (%) | 4.26 | 4.32 | -0.06 |
| Australia 20-year bond* (%) | 4.56 | 4.62 | -0.06 |
| United States 2-year bond (%) | 4.72 | 4.77 | -0.05 |
| United States 10-year bond (%) | 4.28 | 4.33 | -0.05 |
| United States 30-year bond (%) | 4.43 | 4.48 | -0.05 |
* Implied yields from June 2024 futures. As at 5 June.
LOCAL MARKETS
Australian Commonwealth Government bond yields moved lower across the curve, in line with movements of US Treasury yields on Tuesday night. March quarter GDP figures were released.
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 4.115%, 21bps below the current cash rate, thus pricing in a high likelihood of a 25bp cut between now and next May.
US MARKETS
US Treasury bond yields again moved lower across the curve. The only notable data release was the ISM’s May non-manufacturing PMI report.
The next FOMC meeting ends on 12 June. June federal funds futures implied an average cash rate of 5.33% for the month and thus no chance of a 25bp rate cut at the meeting. May 2025 contracts implied 4.475%, 85bps less than the current rate.
