Last week saw some record-breaking moves for Italian bonds, with their yields soaring more than we’ve seen in 25 years amid sudden uncertainty over the future shape of the nation’s government and the likelihood of fresh elections.

The move in Italian yields triggered a big flight to safety, with yields on German bunds and US Treasurys plunging back to levels not seen in months. The astonishing moves raised questions about the trajectory for global rates.

Global fixed income markets are an important factor in the cost of borrowing for Australian banks, and in this week’s episode of the Devils and Details podcast we’re joined by Shane Oliver, chief economist at AMP Capital, to discuss the market moves and dive deeper into how this transmits to the Australian domestic picture.

We also take another look at the property market, with increasing numbers of forecasters now starting to talk about potentially years of price declines ahead and the big question being just how orderly the slowdown will be.

Oliver is also a pop music connoisseur so at the end we also get a chance to talk quickly about some of the music we’ve been listening to lately.

You find the show online here, search for the show under Devils and Details on iTunes or your podcast platform of choice, or listen in below.

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