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).
