Economics

Bond Meltdown Haunts Australian Central Bank as Inflation Builds

  • Last CPI data pushed three-year yield up by most in decades
  • RBA faces rates guidance test even if it scraps bond buying

The Reserve Bank of Australia in Sydney.

Photographer: David Gray/Bloomberg
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Australian bond yields are primed to set new highs as bets that the central bank will scrap quantitative easing reach a crescendo ahead of a pivotal inflation report.