The US 10 Year Bond Yields are rising with US interest rate cycle. This will push AUS 10 Year Bond Yields higher. Rising bank cost of funds will force rates higher. Equity markets will have to adjust to higher yield outlook but the recovery rate may be slower than expected. 

Despite US fiscal plans running into delays after delays, we continue to see moderated versions of reform getting through and driving inflation and interest rate cycle higher. AUS 10 Year Bond Yields needs to be at a premium US in order to attract capital inflows.