Skip to content

Australia’s 10-Year Yields Surge Above 4% on Global Debt Selloff

  • Nation’s bonds follow Treasury slide after US CPI accelerated
  • Swaps are pricing in 50 basis-point RBA rate hike in July
Updated on

Australia’s sovereign bonds tumbled, pushing benchmark yields above 4% for the first time in eight years, amid a global debt selloff led by expectations of higher central bank interest rates to tackle inflation. 

The nation’s 10-year yields leaped as much as 34 basis points to 4.02%, the biggest one-day increase since October 2008. Rate sensitive three-year yields jumped as much as 42 basis points to 3.54%, the highest since April 2012. The nation’s bonds were playing catch up after local markets were shut Monday for a public holiday.