Australian Bond Yield Hits 15-Year High Amid Global Policy Tightening

Australia's 10-year government bond yield has reached a fresh 15-year high of around 5.4%, as concerns over inflation and global policy tightening intensify.

The surge in oil prices has fueled expectations of further interest rate hikes, with markets now implying an 85% chance of a 25bp hike to 4.60% on September 29.

RBA Governor Bullock is set to address Parliament, where he is expected to reiterate that rates may need to rise further to control inflation.

The US Federal Reserve's decision to keep policy tight this week and potentially move again by December has added pressure on yields.