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Yields on Australian government bonds spiked after the Reserve Bank of Australia (RBA) cut rates to a fresh record low of 0.25% as expected and launched a yield curve control program. 

The yield on the benchmark 10-year bond surged by over 100 basis points after the rate decision hit the wires at 03:30 GMT and was last seen trading near 1.60%. 

Meanwhile, the US 10-year Treasury yield is currently trading at 1.25%. With the Aussie government bond offering a higher yield than its US counterpart, the AUD/USD pair may regain some poise. 

The currency pair is currently trading at 0.5585, having hit an 18-year low of 0.5506 in Asia.