Insights

Over the past 12 months, global bond yields have risen steadily. At the time of writing, the US 10-year bond yield is 5.2% and in Australia a touch higher at 5.3%. In addition, US bond yields have increased every month now since February this year. What are the drivers of these increases, and, more importantly, when does it end (or does it end)?

This article by Gavin Truong first appeared in selfmanagedsuper on 24 July 2026.

“These massive increases in AI-related capex estimates will also pull up S&P 500 EPS estimates for 2026-27, given the accounting mismatch for revenue / profits (immediate recognition) and costs (mostly capitalised). The profits magic of capital spending booms”. James Chanos, President/Founder of Kynikos Associates.

In response to the re-emergence of inflation (core / trimmed mean) which has dogged Australian policy makers since COVID, last month the Reserve Bank of Australia (RBA) raised interest rates for a second time this year to 4.1%.

As specialists, we are often quizzed about many aspects of real estate. And with a global perspective, one topic that seems to come up often is our thoughts on the A-REIT sector and how it compares to the global opportunity set.

Utilities and infrastructure valuations, typically sensitive to long-term yields, have been challenged by an exceptional rise in US bond yields despite significant Fed rate cuts, prompting an examination of the drivers, sustainability, and implications of this move for global listed infrastructure sectors.

Global equity markets continue to rise on the back of a surging US equity market. The source of the gains remains largely in the large cap technology sector, and specifically to companies that are portrayed at the forefront to the AI boom. The feeling of euphoria is leading some very well-seasoned investors to draw parallels to the late 1990s tech boom (and eventual bust).1

This 21st edition of 4D's Trip Insights summarises the findings from Peter Aquilina’s recent travels across the United States. The trip provided valuable perspectives on the evolving political and economic landscape and its implications for infrastructure investment.

The AI boom has reshaped the data centre landscape at a pace few anticipated. Since our May 2024 whitepaper on the AI theme and its implications for data centres, the sector has continued to evolve rapidly. In such a fast-moving space, we believe it’s timely to revisit the landscape and assess how key dynamics have evolved.