Australia's Debt Crisis: Yields Skyrocket, Inflation Soars

0:00Australia's 10-year Treasury bond yield just broke past 5 percent, hitting crisis levels and jacking up the cost for the government to service it. Nearly $1 trillion in gross debt. This spike comes straight from the Iran War, pushing oil prices to multi-year highs, which is fueling cost-push inflation across the board. Earlier this week, official numbers showed annual inflation climbing to 4.6 percent in March, and Treasury regime traumas is warning it. The climb even higher before easing. Markets are signaling they expect the reserve bank to hike rates further to tame this beast. Experts are sounding the alarm, with economists like Warren Hogan calling it a clear sign of Australia's inflation headache, our yields now outpacing. The U.S. 10-year Treasury at 4.43 percent. Bond auctions are seeing less demand, driving those interest rates up fast. Meanwhile, this sets up a debt repayment tsunami, as cheap COVID air bar rings get refinanced at the steeper rates, potentially adding billions to.

1:03Yearly taxpayer costs. Budget watches warn it could spiral deficits higher amid slower growth, making any extra spending way pricier. The reserve bank meets next Tuesday, likely lifting the cash rate to 4.35 percent, but global markets aren't convinced inflation. Other control yet, meaning tougher times ahead for budgets and mortgage holders alike. I'm Corey with the story. That's your Adelaide News Today update, AI-powered and always on.