Australia: 10-Year Yield Tracks US Yields Lower.

Australia’s 10-year government bond yield fell for the third day to 4.32% on Thursday, mirroring a decline in US bond yields as the government shutdown drags on while the latest FOMC minutes showed some indecision over the pace of future rate cuts. Market participants are now awaiting remarks from Fed Chair Jerome Powell later today for clearer guidance on the US policy outlook. Meanwhile, at home, investors have grown less confident that the Reserve Bank of Australia will deliver another rate cut this year, following its hawkish outlook last week. Much now depends on the third-quarter consumer price report, due later this month, where a high reading would likely derail any chance of an easing in November. Futures imply only a 35% probability that the RBA will lower its 3.65% cash rate in November, and a 56% chance of a move in December.