Australia’s 10-year government bond yield remained above 5%, near its highest level since late May, as markets continued to price in further tightening by the RBA (Australia’s central bank). Employment fell by 15,800 in June, compared with expectations for a 15,000 increase, while unemployment rose to a near five-year high of 4.5%. The labor-market deterioration did not fully remove expectations for a rate increase to 4.60% by early next year, with markets assigning it about a 70% probability. Australian yields also followed a reversal in US Treasuries, as investors questioned whether an expanded US Treasury buyback program could provide lasting relief from high long-term borrowing costs. Rising US bond yields added pressure to global debt markets, while renewed concern about the widening US fiscal deficit and heavy debt burden weighed on the dollar.