Recorded 8 September 2026.

Bond yields, persistent inflation and renewed central bank tightening are creating a challenging backdrop for global markets. Here in Australia, falling house prices, softer consumer spending and slowing economic growth add another layer of risk.

In this latest market outlook, Tim Toohey (Head of Macro and Strategy) examines whether rising bond yields reflect a higher-for-longer interest rate environment or more serious concerns about fiscal sustainability. He also considers why Australian equities are particularly sensitive to higher yields, the case for another RBA rate rise, and the potential for weakness in housing to produce a sharper consumer slowdown.

While near-term volatility remains likely, Tim explains why market weakness may create opportunities to add risk ahead of a potential rally in the latter part of 4Q26.