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...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Primary Sector

Dawn deal puts Alliance in dividend-paying position

That would be a number of years away, likely.

Riley Kennedy 5:00am

Sustainable Finance

The United States' anti-sustainability drive is here to stay

Many US investors are keeping their heads down without ditching ESG principles.

Greg Hurrell 5:00am

The United States' anti-sustainability drive is here to stay

Economy

Shock GDP tumble: more easing eyed

The 2Q GDP contraction will likely be revised but it won't change the picture.

Rebecca Howard 5:00am

Sponsored

AI agents: opportunity or graveyard? Spark’s five-point playbook for success

Artificial intelligence agents – autonomous digital entities that analyse data, automate decisions, and act independently – are set to drive a new wave of business transformation.

Spark Enterprise

Sponsored

Future leaders start by Dreaming Big

How OnBeingBold empowers Year 13 girls at free leadership events.

OnBeingBold

More Economy

Economy

Shock GDP tumble: more easing eyed

The 2Q GDP contraction will likely be revised but it won't change the picture.

Rebecca Howard 5:00am

Economy

Willis teases new RBNZ governor after GDP drop

Finance Minister Nicola Willis says a new Reserve Bank of New Zealand governor will be announced “very shortly” as she comes under growing pressure to tackle NZ’s economic woes.Economists are calling on the RBNZ to cut the official cash rate (OCR) more aggressively after yesterda...

Staff reporters 19 Sep 2025