RBA Raises Cash Rate to 4.60% as Global Yields Hover Near Multi-Year Highs

The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%, reaching a 15-year high, while Australian 10-year government bond yields retreated to 5.377% following the decision. Concurrently, U.S. sovereign yields held near multi-year peaks, with the 10-year Treasury yield trading at 5.230% and the 30-year yield near 5.556%. The elevated yields follow weak U.S. Treasury auction demand and rising expectations for further Federal Reserve policy tightening. Money markets are pricing in an approximate 70% probability of an additional Fed rate hike in October as crude oil advanced past $106 per barrel.