A bond sell-off is a rapid selling of bonds, which leads to a decline in their price. It occurs when a large volume of bonds are sold in a short period of time, causing the price of a bond to fall in rapid succession. Sell-offs can be triggered by any number of events and will tend to pick up momentum as investor psychology begins to shift toward fear or panic. The same can also be said for Australian yields, which are at highs not seen for more than 12 years. The sell-off in bonds can impact the economy and consumers in several ways:

• Borrowing costs will stay expensive: When bond prices decline, their yields rise, and yields influence all kinds of interest rates. Credit card rates will stay elevated, making borrowing more expensive for consumers and businesses.

• Weaker bond markets have all kinds of implications for the economy: A sell-off in bond markets can lead to a recession and impact the economy in several ways.

• Impact on banks: The bond sell-off will have a strong impact on banks that hold long-end Treasuries. The longer it persists, the more sectors it will hit.

The sell-off in bonds can be caused by several factors, including the resilience of the global economy, increased government spending, and higher yields. The speed of the move can lead to weaker currencies within the region, a violent sell-off in local rates, and wider EM credit spreads.