Australian government bond yields experienced a slight increase following the release of data revealing stronger-than-anticipated economic growth in the second quarter. The yield on the policy-sensitive three-year bond edged up by one basis point, reaching 3.45 per cent. This level was last observed in late July, reflecting the market’s reaction to the positive economic news.
Longer-term yields also saw upward movement. The 10-year government bond return climbed to 4.40 per cent, marking a six-week high. This increase suggests a broader market adjustment in response to the robust economic performance and potential implications for future monetary policy.
The Australian dollar saw a marginal uptick following the release of the economic data. The Aussie dollar rose to US65.24¢, a slight increase from US65.12¢ recorded before the growth figures were published. Currency markets often react to economic indicators, reflecting investor sentiment and expectations for future economic conditions.
