Australia's 10-year bond yield rises to 1%

The yield on the Aussie 10-year government bond yield jumped to 1% on Wednesday, hitting the highest level since Sept. 1. Meanwhile, the 30-year bond yield has increased to 3%, the level last seen in March before the Reserve Bank of Australia (RBA) signaled policy easing to contain the economic fallout from the coronavirus-induced financial market instability. 

The government bond yields have rallied this week, with the 10-year rising over 20 basis points on hopes of coronavirus vaccine. 

On Monday, the US drugmaker Pfizer announced that its vaccine is more than 90% effective in preventing coronavirus in participants without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis.

The announcement put a bid under the risk assets and weakened demand for traditional havens like bonds and golds. 

The surge in the Aussie government bond yields is bonding well for the AUD/USD. The currency pair is currently trading at 0.7313, representing a 0.42% gain on the day.