With bond yields lifting from ridiculously low levels, there can be little doubt that the interplay between rising bond yields and equity markets has been muted until recently. But if long-dated bond yields leap through 5 per cent, equity markets will likely begin to feel pain.

But then again, so will the buyers of $8 billion worth in the 31-year Australian government bond tender (last week). Those bonds cleared at a yield of just under 5 per cent per annum.