Markets have now priced in 50bps hikes from the RBA in July, August and September with an OCR as high as 3.5% by December.
Yields on Aus bonds surged today in the largest single move since 2009. With mortgage rates soaring from recent lows of around 2% up to 6% in coming months, the Australian housing market could be entering its most severe and shocking downturn in more than a century.
