Australia’s benchmark 10-year Treasury yields refresh the seven-year high to 3.338%, around 3.322% by the press time, on the Reserve Bank of Australia’s (RBA) stellar rate hike.

The Aussie central bank surprised bulls by crossing the 15 basis points (bps) of market forecasts with a 25 (bps) increase in the benchmark rate to 0.35%. The latest move shrugs off previous fears that the RBA won’t be able to match its foreign friends despite the rate hike.

Read: Breaking: RBA lifts OCR by 25bps to 0.35%, AUD/USD storms through 0.7100

Other than the rate lift, the RBA statement also exerts downside pressure on the Aussie bonds, which in turn fuel the Treasury yields.

Statements like, “It is appropriate to withdraw the extraordinary monetary assistance offered through the pandemic,” as well as, “We don't intend to reinvest the revenues of maturing government bonds,” seem to favor the Australian yields and the currency of late.

It’s worth noting, however, that an absence of Japanese and Chinese traders restricts bond market moves in Asia.