Bond Market To RBA: Put Rates Higher!

A surge in long-term bond yields has driven both the Australian dollar and the local sharemarket to an 11-month low earlier in the week, and may force Reserve Bank of Australia governor Michele Bullock to deliver further cash rate rises, economists say. Adding to expectations that the RBA may deliver one further interest rate rise is an increase in long-dated yields, both locally and abroad. Long-term US bond yields have galloped higher since July alongside strong economic data and an unexpected increase in planned bond issuance to finance the US government’s yawning budget deficit, which Fitch expects to be 6.3 […]