Aussie Bond Yields Drop to Record as U.S. Job Growth Slows
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Australia’s 10-year bond yield dropped to an all-time low after U.S. payrolls grew at the slowest pace in almost six years, slimming the chances the Federal Reserve will increase interest rates in the coming months.
The 10-year yield fell as low as 2.15 percent on Monday in Sydney, a record based on data compiled by Bloomberg going back to 1969. On Friday, the two-year U.S. Treasury yield fell the most since September and the 10-year yield declined 10 basis points as market-implied probability of a July rate increase halved to 27 percent.