Australia Bonds Extend Global Rout on Relentless Rate-Hike Bets
- Aussie 10-year yields soar to highest since March 2020
- Treasuries approach potential trigger for fresh wave of sales
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Australian bonds slumped, helping to re-energize this year’s global bond rout as traders become more certain that just about every major central bank will accelerate tightening steps to rein in inflation.
Australian 10-year yields jumped 13 basis points to 2.13%, the highest since March 2020. Ten-year Treasury yields rose to above 1.94% to a two-year high, getting close to levels that may set off further sales of U.S. bonds via so-called convexity hedging from the holders of mortgage-backed debt.