Data last week showed Australia’s core inflation unexpectedl...

Data last week showed Australia’s core inflation unexpectedly decelerated in the quarter ended June, prompting money markets to swing to pricing an 88 per cent chance of a rate cut in December, according to meeting-dated OIS contracts, and fully price one for February.

The yield on Australia’s policy-sensitive three-year bond hit the lowest level since April on Friday, in response to the consumer price index (CPI) and dovish shift at global central banks. The Australian dollar also slid against the greenback. $AUD (BK20039)$