Australia's 3-year bond yield hits record low

The yield on Australia's three-year government bond yield fell to a record low of 1.354 percent earlier today, possibly tracking the slide in government bond yields across the globe and due to dovish Reserve Bank of Australia (RBA) expectations. 

As of writing, the three-yield is seen at 1.374 percent and the benchmark 10-year yield is hovering just below 1.74 percent. Both the three-year and 10-year yields have dropped more than 30 basis points over the last three weeks. 

The Reserve Bank of Australia (RBA) moved away from its long-held tightening bias in early February and the calls for rate cuts have steadily increased ever since. As of now, most investment banks expect the central bank to cut rates at least by 25 basis points in the second half of this year. The RBNZ joined the dovish bandwagon yesterday by stating that the next rate move could be to the downside. 

The US Fed also signaled a rate pause earlier this month, sending Treasury yields lower. A section of the yield curve inverted last Friday, triggering recessions fears and the German 10-year yield fell below zero percent for the first time since 2016.