Government Bond Yield: Australian Government: Indexed data was reported at 2.232 % pa in Apr 2025. This records an increase from the previous number of 2.214 % pa for Mar 2025. Government Bond Yield: Australian Government: Indexed data is updated monthly, averaging 2.829 % pa from Jul 1985 (Median) to Apr 2025, with 478 observations. The data reached an all-time high of 5.830 % pa in Jan 1987 and a record low of -0.809 % pa in Aug 2021. Government Bond Yield: Australian Government: Indexed data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.M007: Government Bond Yield. This series is an inflation-indexed bond yield with a maturity of 10 years.

Break Even Inflation Rate: 10-Year data was reported at 2.160 % in Mar 2025. This records a decrease from the previous number of 2.320 % for Dec 2024. Break Even Inflation Rate: 10-Year data is updated quarterly, averaging 2.620 % from Dec 1985 (Median) to Mar 2025, with 157 observations. The data reached an all-time high of 9.370 % in Mar 1989 and a record low of 0.660 % in Mar 2020. Break Even Inflation Rate: 10-Year data remains active status in CEIC and is reported by Reserve Bank of Australia. The data is categorized under Global Database’s Australia – Table AU.I067: Breakeven Inflation Rate. The Breakeven 10 Year Inflation Rate is measured by the Reserve Bank of Australia using Commonwealth government securities. For data since 1996, the RBA uses interpolation and projection of the yield curve to estimate both nominal and inflation-indexed bond yields with an exact 10-year maturity. Prior to 1996, these adjustments are not made and the nominal and inflation-indexed bond yields used to derive the series may not reflect ideal 10-year maturities. [COVID-19-IMPACT]

The yield on Australia 10Y Bond Yield rose to 4.37% on July 24, 2025, marking a 0.06 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.24 points and is 0.05 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Australia 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on July of 2025.

As of July 18, 2025, the major economy with the highest yield on 10-year government bonds was Turkey, with a yield of ** percent. This is due to the risks investors take when investing in Turkey, notably due to high inflation rates potentially eradicating any profits made when using a foreign currency to investing in securities denominated in Turkish lira. Of the major developed economies, United Kingdom had one the highest yield on 10-year government bonds at this time with **** percent, while Switzerland had the lowest at **** percent. How does inflation influence the yields of government bonds? Inflation reduces purchasing power over time. Due to this, investors seek higher returns to offset the anticipated decrease in purchasing power resulting from rapid price rises. In countries with high inflation, government bond yields often incorporate investor expectations and risk premiums, resulting in comparatively higher rates offered by these bonds. Why are government bond rates significant? Government bond rates are an important indicator of financial markets, serving as a benchmark for borrowing costs, interest rates, and investor sentiment. They affect the cost of government borrowing, influence the price of various financial instruments, and serve as a reflection of expectations regarding inflation and economic growth. For instance, in financial analysis and investing, people often use the 10-year U.S. government bond rates as a proxy for the longer-term risk-free rate.

Inflation curves or Consumer Price Index (CPI) curves are the term structures of CPI rates at different maturities. They are essential for pricing inflation securities and derivatives.

The most popular inflation products are inflation linked bonds, zero coupon inflation swaps, inflation swaps, and inflation caps/floors.

Unfortunately forward CPI rates are not market observable. But they can be derived/implied from inflation instruments.

FinPricing bootstraps inflation curve from a number of inflation instruments that are the most liquid inflation products at certain maturities.