Australian 10-Year Bond Yields

The local 10s did very little last week as they await this week’s accompanying rhetoric regarding the abovementioned priced-in rate cut. Local credit markets are now pricing in at least three cuts before Christmas, although the possibility of a fourth has been taken off the table for now – one weak economic print, and the doves will start to hope again.

• We can see the local 10s rotating around 4% into Christmas; the lower they move, the more supportive it is for stocks.