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Australian Shares Close Lower as Yields Surge

Published 28/10/2021, 04:26 pm
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By Oliver Gray

Investing.com - The S&P/ASX 200 fell 18.30 points or 0.25% to 7,430.40 during Thursday’s trade, as investors digested third quarter earnings results and market updates both locally and abroad, while a stronger than expected consumer price index spurred yields higher, with the Reserve Bank of Australia opting not to defend its 0.1% bond yield target in its regular market operations.

Among stocks, Pointsbet Holdings Ltd (ASX:PBH) sank 17.61% after releasing a market update that showed heavy spending as the company pursues aggressive growth in the US. Boral Ltd. (ASX:BLD) added 4.41% after disclosing losses that were smaller than investors feared. Reece Ltd (ASX:REH) added 4.88% after reporting third quarter sales that beat market expectations, while Pilbara Minerals Ltd (ASX:PLS) lost 3.62% after flagging 11% increased production of spodumene concentrate, which is used to extract lithium, as demand around the world rises.

On the bond markets, Australia 10-Year yields were at fresh 7-month highs of 1.858% while United States 10-Year rates eased to 1.554%.

Earlier in the session, Reserve Bank of Australia deputy governor Guy Debelle noted signs of fresh momentum across the Australian economy both Victoria and New South Wales emerge from prolonged lockdown periods.

In New Zealand, the NZX 50 was 0.38% lower at 12971.

 

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