Australian 10Y Yield Nears Fresh 2011 Highs

Australia’s 10-year government bond yield rose above 5%, approaching fresh mutil-decade highs as global inflation risks intensified amid renewed Middle East tensions. The move followed President Donald Trump’s order for a naval blockade of the Strait of Hormuz after failed weekend peace talks with Iran, intensifying fears of a prolonged disruption in global energy supply. The energy shock has reinforced expectations that central banks may delay rate cuts or maintain restrictive policy for longer, keeping global yields elevated. In Australia, the repricing comes amid already sticky inflation and uncertainty around the Reserve Bank’s policy path. Markets currently price in a 65% chance the RBA will hike in May and see rates near 4.65% by year-end. Traders now look to RBA Deputy Governor Hauser’s remarks due later today and labor market data this week for further cues on policy outlook.
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