US 10Y 4.08% from 4.25%, Aussie 10Y 4.05% from 4.22% after Fed dovish minutes. Banks +1.2%, REITs +1.5%.
US 10Y Yield at 4.08% After Fed Minutes - Aussie 10Y at 4.05% - Banks and REITs Close Higher - 24 Oct 2026
Published: 24 Oct 2026 | Bonds • US | Source: Fed, RBA
US 10-year Treasury yield closed at 4.08%, down from 4.25% two days ago. Aussie 10-year closed at 4.05%, down from 4.22%. Banks closed +1.2%, REITs +1.5% on day. ASX 200 earnings yield ~6.5% vs bond yield 4.08% implies equity risk premium ~2.4% per Bloomberg data.
Why Yields Moved - Reported Factors
- US CPI expected 3.2% (vs 3.4% prior) on 13 Nov, jobless claims 230k (+15k) - labor cooling
- Fed Waller public speech: "We can cut in December if data allows"
- Real yield (10Y minus inflation) ~1.6% down from 1.8% - makes equities relatively more attractive historically
- Aussie 10Y follows US 10Y with correlation ~0.85 historically (RBA research)
Winners & Losers - Factual Impact (Historical Observation)
| Sector | Yield Move Impact | Example Mover |
|---|---|---|
| Banks | Lower yields may reduce NIM but boost loan growth historically | CBA $135.20 +1.8% |
| REITs | Lower discount rates may support valuations | GMG $55 +1.5% |
| Tech | Long duration - yields down often helps | XRO $155 +2.2% |
Educational Context: Bond yields and equity prices often have inverse relationship for rate-sensitive sectors. When yields fall, borrowing costs may fall and discounted cash flow valuations may rise. However relationship is not guaranteed. Past yield moves do not predict future. This is general information about how yields and equities have historically related, not advice. Seek licensed advice.
Disclaimer
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