Australia’s 10-year government bond yield fell to 4.76% on Wednesday, retreating from a more than two-week high, amid strong demand for the government’s sale of new 2037 Treasury bonds. The government sold A$15 billion of these bonds through a syndicated offer that attracted bids worth nearly A$67 billion. Investor attention now turns to the December jobs report due on Thursday, which could influence expectations for the Reserve Bank of Australia’s next policy move. A notably weak result would reduce the likelihood of a near-term interest-rate hike, although much will depend on the fourth-quarter inflation data due next week. Traders are currently pricing in around a 30% chance of a 25-basis-point increase at the RBA’s meeting in February. Bond yields had climbed earlier in the week amid a sharp sell-off in Japanese government bonds and US President Donald Trump’s disputes with European allies over Greenland.
