| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 4.08 | 4.07 | 0.01 |
| Australia 10-year bond* (%) | 4.45 | 4.41 | 0.04 |
| Australia 20-year bond* (%) | 4.75 | 4.71 | 0.04 |
| United States 2-year bond (%) | 4.93 | 4.97 | -0.04 |
| United States 10-year bond (%) | 4.55 | 4.62 | -0.07 |
| United States 30-year bond (%) | 4.68 | 4.73 | -0.05 |
* Implied yields from June 2024 futures. As at 30 May.
LOCAL MARKETS
Australian Commonwealth Government bond yields moved a touch higher at the short end while longer-term yields moved up moderately. Economic reports included March quarter capex and April dwelling approval numbers.
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 4.24%, 8bps below the current cash rate, and thus pricing in some chance of a 25bp cut between now and next May.
US MARKETS
US Treasury bond yields moved lower accross the curve. Data releases included an update to March quarter GDP, weekly initial jobless claims, April pending home sales and April wholesale inventories.
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 4.725%, 60bps less than the current rate.
