Economics
Aussie Bond Yields Surge as Jobs Surprise Raise Tightening Bets
- Bonds had already been under pressure after hawkish Fed
- RBA’s Lowe says central bank considering tapering options
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Australia’s bond yields pushed higher after the country recorded a surge in employment as the economy reopened, further strengthening bets that the central bank will withdraw monetary stimulus sooner than later.
Yields on 3-year bonds surged as much as 14 basis points to 1.05%, while the 10-year equivalents climbed seven basis points. Bonds were already under pressure after the Federal Reserve outlined a faster tapering plan and signaled rate hikes on Wednesday.