Australia’s 10-year bond yield edged up to 4.37%, near a two-month high, as investors await the upcoming labour market report that could influence the Reserve Bank’s rate path. On Monday, RBA Deputy Governor Andrew Hauser highlighted the unusual challenge facing monetary policy, stressing the need to keep conditions tight to contain inflation. He also noted that demand was “slightly” above potential when GDP growth accelerated last year, reflecting the tightest recovery since the early 1980s and leaving little room for expansion without reigniting inflation. Last week, the RBA kept its cash rate at 3.6% amid persistent inflationary pressures and a still-tight job market. Markets still expect one more rate cut by May next year, though some analysts warn that the easing cycle may already be over. Meanwhile, recent data showed consumer confidence surged in November, with households turning more optimistic about the economic outlook, while business conditions also picked up in October.
