Australian markets have remained relatively unmoved on Wednesday following the Reserve Bank (RBA)'s 50 basis point hike to the cash rate yesterday.
The All Ordinaries Index (ASX: XAO) is down 0.34% on the day so far. Earlier in the session, it was in the green.
However, these two ASX All Ords shares have outstripped the pack today and are posting tidy gains.
Whispir Ltd (ASX: WSP)
The Whispir share price is pushing 17.89% higher today on no news. Shares in the communication technology company have been punished in 2022, posting a loss of 48% in that time.
What could be behind the rise in this tech share today is a fall in long-dated government bond yields.
Valuations of tech shares are closely related to movements in bond yields. The mathematical relationship roughly dictates that as bond yields fall, the valuations on risk assets such as tech shares begin rising, and vice-versa.
Indeed, the relationship is especially sensitive in technology shares. In fact, this has largely explained the large drawdown in the ASX tech basket in 2022. As yields have spiked, this has compressed tech share prices.
However, yields on long-dated government bonds have been in a consolidation phase since 14 June.
The current yield on the 10-year Australian note is 3.4%, dropping from a high of more than 4% last month.
Given the relationship described above, the pullback seems to be a bullish sign for tech shares like Whispir.
Certainly, investors are bidding up the stock today on a daily volume of 96% of the company's four-week average trading volume. The Whispir share price is now $1.12 apiece.
Eroad Ltd (ASX: ERD)
Investors drove the Eroad share price to a gain of 18.15% at the time of writing despite no market sensitive updates from the company.
However, similar to Whispir, this All Ords tech share has climbed along with the pullback in government bond yields.
Prior to today's gain, the company's share price had stamped its 52-week lows last week, closing at $1.26 on 30 June. This followed a sustained downward run across the 12-month period.
Unprofitable tech shares like Eroad endured a significant down-rating from investors in 2022. However, if the trend in bond yields continues, it could spell further upside for the sector.
In the last 12 months, Eroad has lost more than 71%, now trading at $1.66 per share.
