Aust shares rolled by rising bond yields

SYDNEY, AAP – A second-half fade for the ASX has left investors with a reminder that rising interest rates could dominate 2022.

The Australian market turned from gains to losses on Tuesday as bond yields rose here and abroad.

The Australian government 10-year-bond was at 1.93 per cent as investors anticipate the US Federal Reserve raising rates several times this year.

The benchmark S&P/ASX200 index closed lower by 8.5 points, or 0.11 per cent, to 7408.8 points.

The All Ordinaries index lost 3.5 points, or 0.05 per cent, to 7735.8 points.

The Australian dollar was buying 71.91 US cents at 1619 AEDT, lower from 72.06 US cents at Monday’s close.