Bond yield spike to slow spending, but not enough to stop rate hike

The surge in long-dated US bond yields will slow business spending in Australia and put a break on equity markets, but economists say it is unlikely to be enough to stop an interest rate rise this month.

Yields on 10-year notes, a key benchmark for mortgages and business loans in the US, hit 4.85 per cent, levels not seen since late 2023, after the Trump administration announced a $US6 billion ($8.3 billion) buyback of long-dated bonds, disappointing investors who had wanted more.

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