The Commonwealth Bank of Australia said that weakening US inflation data or the Federal Reserve's interest rate hike may be the only fuse to stop a wave of global bond sell-offs. “It's just large-scale hawkish sentiment prevailing,” said Michael Tang, the bank's interest rate strategist based in Sydney. “Oil prices have just soared, US buybacks are disappointing. Trump is also talking about paying a $5,000 dividend, and investors are extremely sensitive to fiscal control during this period.” “In my opinion, weakening US CPI data and the Fed's interest rate hike are indeed the only fuse currently available; otherwise, I don't think anyone would want to increase interest rates.” “It is impossible for the US to introduce any meaningful fiscal policy measures in the short term, so monetary policy is the last bastion of credibility.”

The Commonwealth Bank of Australia said that weakening US inflation data or the Federal Reserve's interest rate hike may be the only fuse to stop a wave of global bond sell-offs. “It's just large-scale hawkish sentiment prevailing,” said Michael Tang, the bank's interest rate strategist based in Sydney. “Oil prices have just soared, US buybacks are disappointing. Trump is also talking about paying a $5,000 dividend, and investors are extremely sensitive to fiscal control during this period.” “In my opinion, weakening US CPI data and the Fed's interest rate hike are indeed the only fuse currently available; otherwise, I don't think anyone would want to increase interest rates.” “It is impossible for the US to introduce any meaningful fiscal policy measures in the short term, so monetary policy is the last bastion of credibility.”