RBA Warns of Disorderly Bond Market Amid Global Sell-Off

The Reserve Bank of Australia (RBA) has sounded a warning about global bond markets becoming 'disorderly' if public balance sheets continue to expand. This comes amid a steep sell-off that is increasing the cost of government debt.

In its semi-annual financial system health check, the RBA noted that global sovereign bond markets could experience a disorderly repricing, which may have far-reaching consequences for asset markets in Australia.

The warning was delivered as global markets struggle with rising interest rates and increasing government borrowing. The RBA's comments suggest that the current situation has the potential to lead to a broader market disruption.