Last week’s surprisingly soft employment data raised hopes of an RBA rate cut on Melbourne Cup Day, with the odds now sitting at 55% whereas a cut before Christmas is fully baked into the cake – the markets are asking the question of when, not if, Michele Bullock et al again cut rates this year.
- We believe the local 3s can test the 2.75%-3% area in 2026, providing an ongoing tailwind for stocks.
MM remains bullish towards the Australian 3s (yields lower), medium/long term
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