Australian 10-Year Bond Yield

Local bond markets are likely to open under pressure this morning with oil market chaos likely to deepen as the upheaval, now in its ninth day, shows no sign of imminent resolution. Futures markets are pricing in two rate hikes by the RBA this year with inflation fears increasing almost by the day, a quick resolution to the conflict is required otherwise mortgage holders are likely to be in for a tough time.

• We can see the local 10s testing 5% this week on inflation fears which is likely to weigh on stocks at least short term.