SYDNEY, AAP – Rising bond yields and mounting expectations of earlier rate rises have led to the biggest loss on the ASX since October 1.

The Reserve Bank opted not to buy bonds on Friday to try and defend its yield curve control target of 0.1 per cent, as it did last week.

Analysts claimed the decision paved the way for a shift in stance when the central bank gives its monetary policy decision on Tuesday.

All share categories fell. Property stocks fared worst.

The benchmark S&P/ASX200 index closed lower by 106.7 points, or 1.44 per cent, to 7323.7 at 1200 AEDT.

The All Ordinaries closed down 100.6 points, or 1.3 per cent, to 7639.1.

The Australian dollar was buying 75.49 US cents at 1620 AEDT, higher from 75.05 cents at Thursday’s close.