Bond Yields Soar as Oil Prices Top $100, RBA Rate Hike Now Seen as Likely

Australia's government bond yields have risen to near 15-year highs due to concerns about another inflation surge.

The 10-year bond yield has climbed above 5% as oil prices return to over $100 a barrel, driven by escalating geopolitical tensions in the Middle East and new tariffs introduced by the Trump administration.

This shift is changing expectations for Australian monetary policy, with investors now considering whether the Reserve Bank of Australia could increase interest rates again as early as August.