Investors bought Australian government bonds after the Reserve Bank of Australia pushed borrowing costs to a 15‑year high, betting the tightening cycle is close to its end. Schroders bought 3‑year Australian government bonds on Tuesday, and Franklin Templeton said it prefers two‑ to three‑year maturities. Governor Bullock said the four rate hikes this year should be sufficient to bring inflation back to target. The RBA raised the cash rate from 4.35% to 4.6% in line with market expectations, but

Investors bought Australian government bonds after the Reserve Bank of Australia pushed borrowing costs to a 15‑year high, betting the tightening cycle is close to its end. Schroders bought 3‑year Australian government bonds on Tuesday, and Franklin Templeton said it prefers two‑ to three‑year maturities. Governor Bullock said the four rate hikes this year should be sufficient to bring inflation back to target. The RBA raised the cash rate from 4.35% to 4.6% in line with market expectations, but its post‑meeting commentary was seen as less hawkish than anticipated. Slowing economic momentum — including unemployment near a five‑year high and a cooling housing market — underpinned the tone shift, lifting Australian bonds into Wednesday morning and prompting traders to scale back bets on further tightening.