Closing Bell 11th October: Global Rate Halt Speculations Soften Bond Yields as Israel Preps for Ground Offensive

Iron Ore Reacts to Chinese Stimulus Speculation

Iron ore futures experienced a surge following China’s consideration to issue over 1 trillion yuan ($US137 billion) in sovereign debt for infrastructure spending. This move aims to strengthen its economy. Australian miners, anticipating increased demand from China, saw their shares rise. Notably, Rio Tinto increased by 1.5%, BHP by 1.2%, and Fortescue by 1%.

Australian Bond Yields Reflect Rate Peak Hopes

Australian bond yields softened, mirroring US trends after Federal Reserve officials hinted at halting interest rate hikes. Australia’s three-year yields touched a four-week low, while US benchmark 10-year yields saw their most significant daily drop since July. The Fed’s future actions now suggest a 30% likelihood of a rate increase by December.

Israel’s Ground Offensive Looms

Israeli Defence Minister Yoavv Gallant indicated a potential ground offensive into Gaza, following initial airstrikes. Israelis have been advised to prepare shelters and stock up on essentials for up to 72 hours, signaling the gravity of the situation.