With real yields surging in the U.S. and Japan’s bond market under pressure — and the impact is spreading well beyond Wall Street.
The sharp rise in real yields, which account for inflation, is driving a sell-off in U.S. Treasuries. This is pushing up borrowing costs worldwide, including in Australia, where mortgage repayments, business loans and superannuation portfolios are all feeling the strain.
Gold and bitcoin are also reacting, as investors seek shelter from ongoing volatility. In Japan, years of ultra-loose monetary policy are now colliding with inflation shifts, creating further instability.
If central banks intervene with drastic measures, a “bond tantrum” could follow — triggering fresh market shocks. The message for Australians is clear: global rate moves have local consequences.
