MENU

Impact on the share market of higher global bond yields

Is it the end of the bull market in bonds? The US ten year bond yield has been over 3% three times in the last month and is now at 3.11%.

According to Macquarie’s analysts’ rates are likely to go higher on the back of a pick up in global inflation, and the unwinding of the enormous monetary stimulus of the past decade.

Although, the official rate in Australia is unlikely to move up yet, what happens offshore is reflected here with Australia’s ten year bond yield at 2.92%

Sectors that are often impacted by higher bond yields are REITs and infrastructure.

In the REITs sector companies seeing softer prices include Stockland Corporation Ltd (ASX: SGP), Scentre Group (ASX: SCG) and Westfield Corp Ltd (ASX: WFD).

The following infrastructure companies are also down:  Spark Infrastructure Group (ASX: SKI), Transurban Group (ASX: TCL) (Transurban is also being sold on the back of the ACCC scrutiny of the Westconnex acquisition), and Sydney Airport Holdings Pty Ltd (ASK: SYD).

This "Holy Grail" Technology Could Produce World's First Trillionaire

One of the world's richest people is sounding the alarm on what could be a trillion-dollar technology.

And when a tech billionaire - several times over - speaks, it pays to listen.

This could be your chance to get in on the ground floor!

Click here to discover a $19.9 trillion dollar idea -- hidden in plain sight!

Motley Fool contributor Rosemary Steinfort holds shares in Transurban. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.