Australian bond yield rise, 10-yr clocks 15-month high

Australian bonds dropped in line with the Treasuries, with the benchmark 10-year yield rising to 2.94%, its highest level since December 2015. 

Australian bond yields remain well above the Treasury yields, but the spread has narrowed recently as the global investors price in more monetary tightening by the Federal Reserve. 

At the time of writing, the 10-yr Aussie bond yield was trading at 2.936%, up almost six basis points. The 2-yr yield was up close to three basis points at 1.923%.