Australia’s 10-year government bond yield remained above 5%, trading near its highest level since late May as expectations for further policy tightening remained despite weak jobs data. Figures showed employment fell by 15,800 in June against expectations for a 15,000 increase, while the unemployment rate rose to a near five-year high of 4.5%, signaling a softening labor market. However, the data was not considered weak enough to fully eliminate expectations for further RBA tightening, with markets pricing around a 70% chance of a rate hike to 4.60% by early next year. Meanwhile, Australian bond yields tracked the reversal in US Treasuries, as investors questioned whether the US Treasury’s expanded buyback program could provide lasting reprieve from elevated long-term borrowing costs. The fading rally in US bonds pushed yields higher and kept pressure on global bond markets, while renewed concerns over the widening US fiscal deficit and heavy debt burden weighed on the dollar.