{
  "id": 6726141,
  "title": "Australian dollar suffers setback, yields spike to 15-year peak",
  "url": "https://urgent.news/2026/09/11/australian-dollar-suffers-setback-yields-spike-to-15-year-peak",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T07:13:01.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40439036/australian-dollar-suffers-setback-yields-spike-to-15-year-peak"
  },
  "original_language": "en",
  "account": "Sydney - The Australian and New Zealand dollars faced a setback on Friday as rising oil prices weighed on risk assets and led investors to anticipate more global interest rate hikes. Market expectations swelled that the Reserve Bank of Australia (RBA) would raise rates later in the month, driving bond yields to 15-year highs.\n\nJosh Williamson, head of Australian economics at Citi, stated that the RBA needs to take additional rate hikes to tackle inflation, predicting two more increases this year. This optimism has pushed their terminal rate forecast to 4.85%. Williamson added that the market is underestimating the likelihood of consecutive RBA rate hikes, which are crucial for curbing inflation.\n\nSwap markets now anticipate 33 basis points of hikes by November and 40 basis points for December. However, these expectations could rise if the RBA raises its cash rate from 4.35% during its September 29 meeting. Bond markets responded swiftly, with three-year yields surging 18 basis points to 5.050% and 10-year yields climbing to 5.256%, their highest levels since mid-2011.\n\nInvestors also increased bets on the US Federal Reserve raising rates at its upcoming meeting, bolstering support for the US dollar. The Australian dollar held steady at $0.7161, after falling 0.8% overnight and falling from a four-month peak of $0.7238. Support is seen at $0.7122, while resistance is near $0.7277.\n\nMeanwhile, the New Zealand dollar struggled, hovering around $0.5811 following a 0.7% overnight decline that pushed it to a six-week low of $0.5795. Major support is at $0.5762, with resistance around $0.5900. The 2-year swap rate in New Zealand rose 21 basis points to 4.024%, as investors predicted the Reserve Bank of New Zealand would tighten monetary policy more aggressively, with the central bank projecting four rate hikes for the year.",
  "summary": "SYDNEY: The Australian and New Zealand dollars came under pressure on Friday as a spike in oil prices slugged risk assets and convinced investors that more rate hikes were now inevitable globally. Fears of higher-for-longer inflation led markets to price in a 90% chance the Reserve Bank of Australia would lift rates later this month, shoving bond yields to 15-year peaks. “In our view, the RBA…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}