| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 3.96 | 3.98 | -0.02 |
| Australia 10-year bond* (%) | 4.29 | 4.32 | -0.03 |
| Australia 20-year bond* (%) | 4.61 | 4.62 | -0.01 |
| United States 2-year bond (%) | 4.95 | 4.95 | 0.01 |
| United States 10-year bond (%) | 4.47 | 4.47 | -0.01 |
| United States 30-year bond (%) | 4.57 | 4.57 | -0.01 |
* Implied yields from June 2024 futures. As at 27 May.
LOCAL MARKETS
Australian Commonwealth Government bond yields generally declined modestly across the curve, slightly outpacing movements of US Treasury yields on Friday night (AEST). There were no domestic economic reports of note.
The next RBA Board meeting ends on 18 June. June futures imply an average cash rate of 4.315% for the month and thus a small probability of a 25bp rate cut at the meeting. May 2025 futures imply 4.13%, 19bps below the current cash rate, and thus pricing in a solid chance of a 25bp cut between now and next May.
US MARKETS
US Treasury bond yields were unchanged due to US Memorial Day.
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 4.73%, 60bps less than the current rate.
