Australia's trimmed-mean CPI for the three months to September rose 3.7% YoY,
the Australian Bureau of Statistics said on Wednesday, above the prior quarter
and economists' 3.6% forecast. The policy-sensitive three-year government bond
yield climbed as much as 8bps to 4.93%. Traders now price a 78% probability of
an RBA rate hike at next Tuesday's policy meeting, up from 70% before the data.
ANZ rates strategist Robert Thompson said a hike is now essentially certain
given recent RBA comments and worrying report details — core inflation remains
too high and market services prices have risen again after stripping volatile
items — and he would be very surprised if the RBA did not raise rates.
