SYDNEY, AAP – Australia’s share market struggled to move higher as expectations of increased interest rates made bond yields more attractive than equities.
The ASX was half a per cent higher for much of Monday but the indices tumbled late in the trading day.
The Australian government 10-year bond yield rose to 2.87 per cent as investors tip the Reserve Bank will follow the US Federal Reserve and increase rates.
The benchmark S&P/ASX200 index closed up 6.2 points, or 0.08 per cent, to 7412.4.
The index is less than 200 points from its record of August.
The All Ordinaries index closed lower by 0.6 points, or 0.01 per cent, to 7689.3.
The Australian dollar was buying 75.27 US cents at 1623 AEDT, higher from 75.19 US cents at Friday’s close.