Bond markets scream rate cut after jobless rate ‘curveball’

An unexpected spike in Australia’s unemployment rate to 4.5 per cent in September has prompted bond investors to rapidly price in an interest rate cut by the Reserve Bank of Australia next month.

While economists had been expecting a modest uptick in the jobless rate to 4.3 per cent from 4.2 per cent, the strong print – the highest in four years – triggered a drop in the Australian dollar, a rally on the ASX and the biggest one-day decline in bond yields since early August.

Source: https://www.afr.com/markets/debt-markets/bond-markets-scream-rate-cut-after-jobless-rate-curveball-20251016-p5n30e