End-of-day summary:
The share market regained a fraction of yesterday's losses, but finished off its intraday high as bond yields resumed their march higher.
The ASX 200 rallied as much as 27 points in early action before trimming its gain to 10 points or 0.13%. The index tumbled 139 points yesterday from record levels.
Rate-sensitive sectors faded as bond yields ground higher here and in the US. Gains in supermarkets and bulk metal miners were partly offset by declines in tech companies, healthcare providers and REITs as the US 10-year yield hit a three-month high and the Australian 10-year yield touched its highest since late May.
"US 10-year yields have climbed a jaw-dropping 52 basis points higher since the Fed cut rates in September. tweeted IG market analyst Tony Sycamore this afternoon. "Equities, including our own interest rate sensitive ASX200, are unlikely to respond well if US yields continue to rally. Higher US yields will also likely flow into higher yields across global bond markets and further boost the rampaging #USD," he added.
US stocks finished off their lows overnight during a temporary pause in the bond sell-off. The Dow and S&P 500 pared larger initial losses to less than 0.1% by the close.
