Australian Bond Yields Surge Amid Global Interest Rate Hikes

Australia's 10-year government bond yield has surged to near its highest level since mid-2011, trading above 5.3%.

This move tracks a global trend in bond yields, which rose after the Federal Reserve delivered its first rate hike in three years.

The Fed raised its federal funds rate by 25 basis points to 3.75%-4.00%, citing elevated inflation, and projected at least one more hike this year.

The focus now shifts to the Reserve Bank of Australia's upcoming policy decision on September 29, with markets pricing an 85% chance of a 25bp increase from the current 4.35% rate.