Australia 10-Year Bond Yield Rebounds
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Australia’s 10-year government bond yield rose to around 4.18%, reversing losses from the previous session, as traders parsed fresh economic data.
Australia’s surplus on trade goods widened sharply to A$6.9 billion in March, much higher than forecasts of A$3.9 billion, as exports jumped 7.6% while imports fell 2.2%.
Additionally, factory activity continued to expand in April, supported by rising new work inflows.
However, data on Wednesday showed core inflation eased to 2.9% in Q1 from 3.3%, falling within the Reserve Bank's 2-3% target range for the first time since late 2021.
This reinforced expectations that the central bank could lower its cash rate by 25bps to 3.85% later this month.