Dawn chorus: Bond yields jump
10 year Government bond yield up sharply to 1.64%, highest level since June 2019; S&P sovereign credit upgrade ignored by bond markets; RBNZ may have nudge long rates down again
TLDR: Yesterday’s sovereign credit rating upgrade was lauded by Finance Minister Grant Robertson, but bond markets ignored it and escalated a selloff that pushed the 10 year Government bond yield — a proxy for borrowing costs — up sharply to 1.64%, its highest level since June 2019.
This is not what the Reserve Bank had planned and we’ll find out on Wedn…
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