Bond Market Jitters Send Aussie, Kiwi Lower

The Australian and New Zealand dollars both fell overnight ahead of key economic news for each currency. The sell-off was largely driven by rising bond yields across the globe, with investors worried about higher inflation, government spending, and a warning from Federal Reserve Chair Kevin Warsh last week that interest rates could rise further.

Bond market jitters saw the US 10-year benchmark yield jump to 4.80%, its highest level since October last year. Meanwhile, longer-term US yields remain near 20-year highs.

Oil prices also contributed to the sell-off, rising by around 5% due to renewed conflict between the US and Iran, which pushed Brent crude to $95 per barrel.