The Australian bond market (as measured by the Bloomberg AusBond Composite 0+ Yr Index) was up 0.16% over the month. The yield curve flattened as the spread between long-term and short-term bond yields narrowed. 3-year government bond yields ended the month up 3 basis points (bps) while 10-year government bond yields also rose, up 2 bps to 2.65%. Short-term bank bill rates ended the month lower. The 1-month rate was down 14 bps to 1.88%, the 3-month rate was down 15 bps to 1.96% while the 6-month rate was down 7 bps to 2.15%. The Australian dollar remained unchanged in July, closing the month at USD 0.74.