Bonds and interest rates move in opposite directions — when market yields rise, the value of a bond you already hold falls. This shows how far, in dollars, if yields shift.
Your bond
A yield is the return a bond gives if you hold it to maturity. The catch: when market yields rise, the price of bonds already on issue falls — because new bonds now pay more, so yours is worth less to a buyer. That inverse relationship is why "safe" bonds and bond funds lost money when rates jumped in 2022.
What moves yields is mostly expected inflation and the RBA cash rate: higher inflation or rate rises push yields up; cuts and cooling inflation pull them down. So a bond yield is really the market's view on where rates and inflation are heading.
The shape of the yield curve — long-term yields versus short-term — is a signal in itself. Normally long yields sit above short. When short yields climb above long ("an inverted curve"), markets are betting on rate cuts and a slowdown — historically one of the more reliable recession warnings.
For you: rising yields dent the value of bonds you hold today, but they also mean new bonds and term deposits pay more. Longer-dated bonds move the most — which is exactly what the number above shows.
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