Westpac said that Japan's possible foreign defense spending will increase pain in the bond market and have an impact on global bonds. Martin Wheton, head of financial market strategy at the bank, said, “The Fed's interest rate hike and the continued rise in oil prices will once again push up US Treasury yields. The phenomenon of yields approaching 5% during Monday's trading session should be viewed as the norm rather than the exception.”

Westpac said that Japan's possible foreign defense spending will increase pain in the bond market and have an impact on global bonds. Martin Wheton, head of financial market strategy at the bank, said, “The Fed's interest rate hike and the continued rise in oil prices will once again push up US Treasury yields. The phenomenon of yields approaching 5% during Monday's trading session should be viewed as the norm rather than the exception.”