- Government bond yields rose in Australia and Japan, while Treasuries maintained the majority of their steep increase from the previous day as investors reviewed the dangers posed by inflation.
- Benchmark 10-yr rates in Australia and New Zealand jumped roughly 14 bps on Thursday, while Japanese yields of the same term rose about 2 bps. The 3-yr bond yield in Australia reached its highest level since 2012.
- The unexpected decision by the BoC to resume its rate-hiking campaign, which follows an increase earlier this week in Australia, has prompted a reconsideration of bond market values.
- Meanwhile, Japan's decisions were strongly impacted by GDP data that was much greater than expected, with the economy rising 2.7% in Q1 versus 1.9% growth forecast. The yen strengthened as a result of the news.
- The Canadian tightening had an immediate impact on global markets, prompting traders to increase bets on Federal Reserve tightening, with swaps completely pricing in a quarter-point hike for the July meeting. Betting on next week's decision rose somewhat but were still valued at less than 40% of a hike.
- Treasury rates have levelled down in Asian trading after a steep climb across the curve on Wednesday, adding 14 bps to the 10-yr benchmark.
