Australia’s 10-year government bond yield fell to around 4.73%, its lowest in over a week, as softer-than-expected inflation data supported the view that the RBA may hold rates for now. Headline inflation slowed to 3.4% in November from 3.8% in October and was below expectations of 3.7%. The closely watched trimmed mean inflation also eased to 3.2% from 3.3%. However, both figures were still above the central bank’s 2-3% target band, suggesting that inflation remains sticky. Since this is only the second full monthly CPI reading, which tends to be more volatile than the long-running quarterly series, investors are looking ahead to the fourth-quarter report, due later this month, for a clearer picture of the inflation trend. Still, traders assign a 35% probability to a 25-bp rate hike at the RBA’s February meeting, with such a move almost fully priced in by May. Recently, the RBA has signaled that policy tightening may be required if disinflation does not progress as expected.