The call to “embrace fixed rates” will have many Australians thinking about their mortgage. However, these are not the fixed rates being talked about – quite the opposite.

Data this month from global and the Australian economy (mostly related to the still tight jobs markets) is prompting financial markets to reconsider just where the top of the interest rate cycle will be. Reflecting this, bond yields (and all things fixed income) have risen sharply in yield, exceeding previous highs of October last year. Over recent weeks, near-risk-free 10-year government bonds in Australia touched 4.28 per cent, while US two-year bonds breached 5 per cent.