RBA Governor Lowe is speaking at an event honoring journalists says:
- monitoring the job market for labor costs signals and how pervasive shift in inflation is psychology is
- Also monitoring how persistent supply-side problems will be
- RBA will not respond until there is evidence of a pervasive price pressures
Meanwhile in the Australian debt market, the 10 year yield has moved higher and traded to the highest level since November 2018 today at 2.716%. That is up from 2.01% on March 1, and from 1.670% at the end of 2021. The two year yield is trading at 1.533%. At the end of 2021 the rate was at 0.38%.
The market now sees the target rate of 1.5% by the year end which is up from 1% just a few weeks ago. The first move is expected in June and is fully priced in.
