What is going on in the bond market? | The Business | ABC NEWS

By ABC News (Australia)

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AMP's head of investment strategy and chief economist, Shane Oliver says the spike in global bond yields shows what bond markets think of the Trump administration's management of the US economy. At time of recording, bond yields are sitting at around a 15-year high, above 5 per cent. He says bond vigilantes have 'suddenly' come back to the fore, and many of the the reasons that interest rates have gone up in the US come back to Donald Trump. "They're acting with their feet saying, 'look, if you're going to keep doing this, keep borrowing all this money, then we're going to get a little bit nervous and we may not lend you as much money' and that puts upwards pressure on bond yields," he says. In Australia, bond markets were pricing in interest rates moving higher, with the Australian 10-year at a 15-year high today. Mr Oliver says many of the factors behind rising Australian bond yields are global, and relate to the US. "The tariffs put upwards pressure on US prices. He then enga

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