A global bond rout is complicating the task of central banks trying to cut interest rates, but analysts say it is unlikely to derail the plan of the Reserve Bank of Australia to lower borrowing costs this year.
A standout US jobs report late last week has triggered a spike in US bond yields as markets significantly dialled back expectations that the Federal Reserve, the world’s most important central bank, will ease rates much further this year, boosting the US dollar.
Source: https://www.afr.com/markets/debt-markets/bond-turmoil-won-t-derail-rba-s-rate-cut-plan-20250114-p5l44a