Australia's 10-year government bond now yields 60 basis points less than its US counterpart

Westpac's rate cut call seems to have put a bid under Australian government bonds, leading to a drop in yields. 

As of writing, the 10-year government bond yield is trading at 2.06 percent - down 60 basis points from the US 10-year treasury yield, which is currently seen at 2.66 percent. 

The 10-year AU-US yield spread has dropped by 25 basis points this month and could slide even further in the near future, courtesy of the rising odds of an early RBA rate cut. 

Westpac now expects the central bank to cut rates by 25 basis points in August and November.