How surging bond rates say 'the world is changing'

Pressure on wages and big-ticket spending areas like health loom as even harder challenges in a high interest rate world. (Image: NZME)

Cameron Bagrie

Tue, 10 Oct 2023

The penny is starting to drop. The US bond market is the epicentre of the global bond system, and the 10-year bond has risen to a 16-year high. The effect of this is rippling across bond markets around the globe. Even Japan has seen bond yields rise to levels not seen since 2013 as it struggles to keep a lid on rates/yield curve control amid inflation. The ripple of those higher global rates has also reached New Zealand, where tightening financial conditions are doing the Reserve Bank of New Zealand’s work for it.In th...

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