| Close | Previous Close | Change | |
|---|---|---|---|
| Australia 3-year bond* (%) | 3.63 | 3.70 | -0.07 |
| Australia 10-year bond* (%) | 4.10 | 4.13 | -0.03 |
| Australia 20-year bond* (%) | 4.39 | 4.41 | -0.02 |
| United States 2-year bond (%) | 4.69 | 4.74 | -0.05 |
| United States 10-year bond (%) | 4.29 | 4.33 | -0.04 |
| United States 30-year bond (%) | 4.44 | 4.45 | -0.01 |
* Implied yields from June 2024 futures. As at 19 March.
LOCAL MARKETS
Australian Commonwealth Government Bond yields moved lower on Tuesday, ignoring modest upward movements of US Treasury yields on Monday night. There were no domestic data releases. The RBA announced it had left its cash rate target unchanged .
The next RBA Board meeting takes place over two days and ends on 7 May. May futures imply an average cash rate of 4.285% for the month and thus a modest probability of a 25bp rate cut at the meeting. However, March 2025 futures imply 3.795%, roughly 54bps below the current cash rate, or two 25bp cuts between now and next March.
US Treasury bond yields fell on Tuesday night following releases of February building permits and February housing starts.
The FOMC is currently meeting and will announce its decision tonight. March federal funds futures implied an average cash rate of 5.33% for the month and thus a negligible probability of a 25bp rate cut at the meeting. However, March 2025 contracts implied a 4.425% rate, 90bps less than the current rate.
US MARKETS
