Australia-US Bond Yield Gap on Brink of Zero

Australia's benchmark bond yield is poised to fall below its US counterpart for the first time in over a year, as expectations diverge on monetary policy between the two economies.

The gap between the two yields has been narrowing, and some strategists see scope for Australian bonds to extend their relative outperformance through end-2026.

Bets are growing that the Reserve Bank of Australia is nearing the end of its tightening cycle while the Federal Reserve has much further to go.