Among the rise in bond yields globally overnight, Australian bonds were one of the biggest movers.
While the yield on US 10-year treasuries is moving steadily back towards 2.3%, Aussie 10-year notes jumped by as much as 10 basis points overnight.
Earlier this morning the yield on 10-year Australian bonds was trading above 2.6%. It marks a substantial increase over the course of this week, with 10-year yields up from around 2.35% on June 27:
The increase in global bond yields sent major stock indices lower, as markets absorbed the recent shift in tone by central banks in the UK, Europe and Canada.
Earlier this week European Central Bank president Mario Draghi indicated that the ECB could be preparing to scale back its stimulus measures if the eurozone economy continues to improve.
Then Bank of England governor Mark Carney put the prospect of a withdrawal of stimulus and/or interest rate rises in the UK back on the table, in comments made at an ECB forum in Portugal.