The spread between the yields on the two-year Australian and US government bonds hit multi-decade lows on Wednesday. The spread fell from -90 basis points to -104 basis – the lowest since September 1997 – after the official data released at 02:00 gmt yesterday showed the cost of living in Australia, as represented by the consumer price index, cooled in the first quarter. Evidence of weaker inflationary pressures boosted the probability of an early RBA rate cut, possibly in May. As a result, bond prices picked up a bid. Notably, the yield on the three-year government bond yield hit a record low of 1.25 percent. The narrowing of yield differentials indicates the path of least resistance for the AUD is to the downside. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next PBOC: Will implement relatively low RRR for small and medium banks FX Street 4 years The spread between the yields on the two-year Australian and US government bonds hit multi-decade lows on Wednesday. The spread fell from -90 basis points to -104 basis - the lowest since September 1997 - after the official data released at 02:00 gmt yesterday showed the cost of living in Australia, as represented by the consumer price index, cooled in the first quarter. Evidence of weaker inflationary pressures boosted the probability of an early RBA rate cut, possibly in May. As a result, bond prices picked up a bid. Notably, the yield on the three-year government bond… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.