The Australian government's 10-year bond yield rose to 5.16% in afternoon trade, the highest level since April 2011. ^[1] AMP chief economist Shane Oliver said the current housing downturn is only about 35% complete in terms of price loss and duration, and he predicts house prices could fall about 10% peak-to-trough, with a market turnaround in the second half of next year. ^[2] Australian national house prices fell 0.9% month-on-month in August, marking the fifth consecutive monthly decline and the sharpest drop since the COVID-19 pandemic. ^[3] Economists stated that the Reserve Bank of Australia will deliver a fourth interest rate hike to combat inflation despite a severe downturn in the property market. ^[4] Australia's gross national debt recently surpassed $1 trillion, and rising interest costs could mean less money left over to pay for government services. ^[5] Rising interest costs on public debt will raise corporate borrowing costs and higher fixed mortgage rates, making it harder for new home borrowers. ^[6] The 10-year Australian Government bond yield reached 5.24% in April 2011 before declining until the COVID-19 pandemic in 2020, when it began to climb from a low of 0.55%. ^[7] In August, Sydney house prices fell 1.4% and Melbourne house prices fell 1.1%, leaving both cities about 7% below their peak levels. ^[8] The Reserve Bank of Australia warned that it may raise interest rates further because inflation remains stubbornly high, which would increase mortgage costs and reduce buyer demand. ^[9] CBA analysts predicted an eventual 12-13% drop in Sydney and Melbourne property prices alongside 8% falls in Brisbane, Perth and Adelaide. ^[10] Michele Bullock, the Reserve Bank's governor, told reporters at her post-meeting press conference on 11 August that the housing market downturn was not the main game when it came to rate decisions. ^[11] New data from Cotality revealed that house prices are now falling in more than 90% of Australian suburbs due to higher borrowing costs and a weak economy. ^[12]