Australia's10-year government bond yield has hit its lowest point ever, signalling at least one further cash rate cut by the Reserve Bank of Australia (RBA).

The dramatic move down in recent weeks puts Australia closer to developed-market peers that have been grappling for years with falling consumer and producer prices and, in some cases, negative real yields on government securities.

The market's attention will now turn to Tuesday's release of the minutes of the RBA's May board meeting. Credit:Fairfax

The latest step down followed data from China at the weekend, which points to more pain for Australian commodity producers.

The Aussie dollar, too, is trading around two and half month lows well below US73¢.