Record Aussie Bond Sales Boom Dented by Iran War, Rising Yields

Australia's bond market has trailed US and European peers since the start of the Iran war, as the conflict has stoked inflation. Elevated inflation pressures have pushed Australian borrowing costs to among the highest in developed markets, weighing on demand for local bond issuance and complicating sovereign funding.

Analysis

Australia's bond market has trailed US and European peers since the start of the Iran war, as the conflict has stoked inflation. Elevated inflation pressures have pushed Australian borrowing costs to among the highest in developed markets, weighing on demand for local bond issuance and complicating sovereign funding.