| Close | Previous Close | Change | |
|---|---|---|---|
| Australian 3-year bond (%) | 3.714 | 3.729 | -0.015 |
| Australian 10-year bond (%) | 4.312 | 4.363 | -0.051 |
| Australian 30-year bond (%) | 4.851 | 4.886 | -0.035 |
| United States 2-year bond (%) | 4.214 | 4.185 | 0.029 |
| United States 10-year bond (%) | 4.436 | 4.42 | 0.016 |
| United States 30-year bond (%) | 4.641 | 4.642 | -0.001 |
* Implied yields from March 2025 futures. As at 6th February.
LOCAL BOND MARKETS
The 3-year yield fell by 1.5 basis points (bps) to 3.714%. The 10-year yield dropped by 5.1 bps to 4.312%. The 30-year yield declined by 3.5 bps to 4.851%. This suggests falling yields across the curve, likely indicating increased demand for bonds which may reflect investor expectations of slower economic growth, lower inflation, or potential rate cuts by the Reserve Bank of Australia (RBA). Australian bond yields declined across the curve, signaling investor demand amid potential rate cut expectations. The 10-year yield saw the biggest drop, reflecting concerns over economic growth. U.S. yields remained unchanged, indicating market stability and cautious sentiment. Investors await further economic signals before making adjustments.
US MARKETS
Treasury yields ticked higher. The yield on benchmark 10-year notes ended at 4.437%, up from 4.421% Wednesday but down from about 4.8% in mid-January.
The yield on 10-year German bonds were flat. The Bloomberg Dollar Spot Index wavered. The British pound fell 0.5%. Bank of England Governor Andrew Bailey cautioned markets against reading too much into how policymakers voted this month after a surprise switch by one official prompted investors to boost bets on more interest-rate reductions.
