Australian 3-Year Bond Yields

The RBA, like the Fed & BOE, is expected to cut rates in the near future with credit markets pricing in a cut this month, and at least two cuts in the next 6-months. Friday’s moves in the US are set to push local 3-year yields down this morning as fears increase around tariffs on the global economy, with investors set to adopt a more cautious, risk-off approach to markets over the coming weeks/months.

• We can see the local 3’s trading between 3% and 3.5% into Christmas; the lower they move, the more supportive it is for rate-sensitive stocks.