Australian Dollar Remains Strong Despite Rising US Yields

The Australian dollar maintained its strength despite climbing US Treasury yields, supported by gains against the New Zealand dollar and euro, as well as resilience in Australian government bonds compared to US Treasuries.

Australia’s 10-year yield reached 5.408%, yet Australian bonds held up better than their US counterparts, narrowing the yield gap between the two countries to about 10 basis points from 39 a month earlier. Australia’s smaller deficit and lower debt make its bonds attractive to central banks seeking diversification from Treasuries. This