- Aussie 10-year bond yield fell eight basis points to three-week lows after the dismal Aussie inflation figure.
- Australia’s consumer price index cooled to 0.3 percent in the first quarter of 2019.
Australia’s 10-year government bond yield slipped to three-week lows on Wednesday, as the quarterly Australian inflation figure missed estimates validating the dovish RBA expectations.
The benchmark bond yield fell eight basis points to 1.799 percent, the lowest level since March 4 after the official data released at 01:30 GMT showed the consumer price inflation (CPI) rose 0.3 percent quarter-on-quarter in the first quarter, narrowly missing the estimated rise to 0.4 percent.
Further, the RBA’s trimmed mean CPI also came-in weaker-than-expected at an annualized 1.6 percent.
The below-forecast CPI readings may bolster the bets of RBA cutting rates twice in the second half of this year. The central bank ditched its long-held tightening bias in February. Most investment banks have predicted two rate cuts for 2019 ever since.
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