90 seconds at 9 am: China in bear market, US Treasury prices slump; yields rising everywhere; huge gold mine writedowns; NZ$1 = US$0.779, TWI = 73.3

Here's my summary of the key news overnight in 90 seconds at 9 am, including news of slumps in both the stock and bond markets.

Stocks fell with Chinese equities entering a bear market on concern the cash crunch there will hurt their economy. The POBC is taking a hard line, confirming its credit tightening policy.

US Treasury prices slumped, pushing 10-year yields to the highest since 2011, as government bond prices from Australia to Germany slid on speculation that a reduction in QE from the US Federal Reserve will lead to an eventual end of record low central-bank borrowing rates.

New Zealand bond yields surged as well, as did swap rates. Credit spreads - the risk premium - which we looked at in yesterday's Top 10 - widened further, especially for NZ and Australian sovereigns as these spreads caught up with their northern hemisphere comparatives.

Everywhere you look, interest rates are rising. Falling bond prices will hurt conservative KiwiSaver funds.

However in late trade, equity markets were paring back the losses and attempting to make a recovery. Oil is higher, but most other commodities are much lower.

Gold can't get back above US$1,300/oz. In fact, gold mining companies have been writing down the value of their mines by stunning amounts. Newcrest has decided on a A$6 billion writedown, and industry wide the writedowns now exceed US$17 billion.

Other metals have been hard hit overnight, and agricultural commodities are down sharply as well. We'll get the next real fix on dairy prices in the July 3 Fonterra auction.

The NZ dollar starts today at 77.9 USc, 83.8 AUc, and the TWI is at 73.3.