In the Financial Review overnight, the article discusses the rise in yields on Australian bonds:
ANZ Banking Group chief economist Warren Hogan called the move a “wipe-out”.
“The 10-year bond yield is up 60 basis points basically in three trading sessions, which is phenomenal,” he said.
- Bonds are (of course) being sold off globally
- Forces at work include “The Fed has sent a very clear signal. US interest rates are rising over the medium term – over the next year or two”, and, on shorter-term fixed interest: “we are going to see the RBA cut the cash rate again this year and there is a risk that it could be more than once.”
With articles like this one starting to pop up it seems a pause (at least) in the move is likely.
