Aussie 10-Year Yield at One-Month Low as Taper Concern Eases

Australia’s benchmark 10-year government bond yield dropped to a one-month low before Federal Reserve Chairman Ben S. Bernanke begins a second day of testimony following remarks that signaled no imminent exit from stimulus that has helped inflate asset prices across the world.

The Aussie dollar fell for a second day after a report showed Australian businesses turned pessimistic about near-term prospects, adding to the case for an interest-rate cut by the Reserve Bank. New Zealand’s kiwi dollar dropped for the first time in four days after a report showed consumer confidence weakened. Both currencies slumped after the International Monetary Fund said risks are increasing that China’s economic growth this year will fall short of the lender’s forecast.