The spread between yields on 10- year Australian government bonds and similar-dated U.S. Treasuries may decline to the narrowest since December, RBC Capital Markets said in a report, citing trading patterns.
Julia Gillard staged a political coup in June 2010 to become Australia’s prime minister and clung to power two months later, assembling a one-seat majority after the closest election since 1940. Her biggest leadership test may come next week.
Reserve Bank of Australia Governor Glenn Stevens ’s view that rebuilding flood-devastated areas won’t stoke inflation doesn’t diminish the chance that he will resume raising interest rates by midyear, economists said.
The Australian dollar fell from the highest since May as the central bank said Europe’s debt crisis would “inevitably weigh” on global growth, fueling speculation it may hold rates unchanged until at least the fourth quarter.
Reserve Bank of Australia Governor Glenn Stevens will hold interest rates unchanged for the longest period of his tenure as a weaker Japanese economy slows exports and eases inflation expectations, money markets show.