Australia’s 10-year government bond yield fell to around 4.51%, mirroring a slight dip in U.S. bond yields after remarks from President Donald Trump urging the Federal Reserve to lower interest rates. Investors are also seeking further clarity on Trump’s tariff plans, as his widely anticipated tariff announcements failed to materialize following his inauguration. In Australia, traders are still wagering the Reserve Bank auddk will cut its 4.35% cash rate by 25bps at its meeting in February. Market attention is now 
turning to the fourth-quarter inflation data due next week that would provide more clues on the RBA’s monetary policy stance. A cooling in underlying inflation would cement expectations for the central bank to cut rates next month. In economic news, Australia’s business activity rose marginally in January (50.3 vs 50.2 in December), as services activity continued to rise, albeit at a slower pace, while the manufacturing sector nears stabilization.
