RBA Decision Looms as Australian Bond Yield Holds Firm

Australia's 10-year government bond yield has remained steady above 4.9%, marking multi-week highs as investors await the Reserve Bank of Australia's (RBA) monetary policy decision on Tuesday.

The RBA is expected to keep its cash rate unchanged at 4.35% for a second straight meeting, with policymakers maintaining a hawkish stance due to elevated inflation.

Markets have priced in around a 50% probability of another 25-basis-point rate hike by year-end, and traders will closely watch the RBA's updated forecasts and Governor Michele Bullock's comments for clues on future policy.