Bond Yields Soar Amid Intensifying Rate Hike Bets

The US bond market has seen significant movement as expectations of further interest rate increases intensify. The yield on the 10-year note jumped by 7 basis points to 5 percent in late trading, a notable rise.

Economists at Bank of America have reaffirmed their forecast that the Federal Reserve will hike rates in October and December, with strategists advising investors to prepare for rates potentially rising above 5 percent. Angelo Kourkafas, senior global strategist of investment strategy at Edward Jones, stated that while recent Fed actions are unlikely to mark a start to an aggressive rate-hiking cycle, it also doesn't appear the Fed is as far behind the curve as in 2022.

Locally, ASX 200 futures point down by 57 points, or 0.7 percent, suggesting a cautious opening for the Australian market. With Thursday's release of August jobs data on tap, investors will be watching closely to see if employment rises by at least 20,000 and unemployment holds steady around 4.5 percent.