90 at 9: Inflation fears grow and global rates rise as government borrowing kicks in

Bernard Hickey details the key news overnight in 90 seconds at 9 am, including news the New Zealand dollar fell to 61.8 US cents as investors globally got nervous about inflation and rising interest rates. Expectations for a US Federal Reserve rate hike in September have doubled in the last week to a 39% chance, while 2 year and 10 year Treasury bond yields rose overnight as investors braced for US$65 billion of fresh supply from the US government. Longer term interest rates are rising here and pushing up long term mortgage rates to 8%.