Reported 9 months ago
Australian bonds have slumped to a seven-month low as traders are betting on another interest-rate hike by the Reserve Bank of Australia. The yield on three-year debt rose to 4.2%, the highest since November 27, following a report of accelerated inflation in May. The tightening spread between three-year and 10-year bond yields shows an increased anticipation of a rate hike, with Deutsche Bank AG now expecting a hike at the RBA's next meeting, driven by persistently high inflation rates.
Source: YAHOO