Are these the first signs of rising interest rates
A sharp increase in long-term bond yields, led by a sell-off in German government bonds, could be the first signs of inflation returning to US and European markets. That could force the US Federal Reserve to begin tightening money supply as soon as September 2015.
Bank of America Merrill Lynch chief economist Saul Eslake said the Reserve Bank would prefer to raise rates from two per cent back to above three per cent to take some heat out of the property market.
The RBA, for now, is saying rate cuts are more likely in the near term.
Source: The New Daily