The spectre of rising inflation put a match to the bond market on Monday and pounded ASX traded real estate and utilities stocks, as Brent crude oil recovered almost all of its ground lost during the pandemic and US inflation expectations hit a seven-year high.

Bond market gauges of inflation pressures – or break-even rates – jumped as Australia’s 10-year break-even rate climbed to 1.927 per cent, the highest since November 2018, and US 10-year break-evens touched 2.2 per cent, last hit in May 2014.