Australia’s 10-year bond yield climbed to 4.45%, its highest level since May, after robust jobs data reduced expectations of any policy easing next year. Employment increased by 42,200 in October, significantly higher than forecasts of a 20,000 increase and September’s 12,700 gain, driven largely by a sharp rise in full-time positions. Unemployment rate fell to 4.3% from 4.5%, slightly below the expected 4.4%. The data underscored the resilience of the labor market, prompting traders to sharply scale back bets on an RBA rate cut in May next year, with the probability dropping to 25% from nearly 70% prior to the data release. Recent indicators have also pointed to underlying economic strength, including a strong rebound in consumer confidence and a surge in new housing loans. Meanwhile, RBA Deputy Governor Andrew Hauser said Wednesday that there is an ongoing debate over whether the current 3.6% cash rate is sufficiently restrictive to control inflation.
