Australia's Council of Financial Regulators has called for close monitoring of global financial markets after longer-term bond yields rose across many advanced economies amid inflationary pressures and increased funding demand. Bond markets continue to function orderly, while the Australian financial system remains well placed to manage shocks. The Council nevertheless reiterated that financial institutions should strengthen their resilience to financial, operational and geopolitical disruption, continuing its earlier focus on market volatility and cyber risks. The Council also highlighted the increasing complexity of cyber threats associated with advances in frontier artificial intelligence. Its member agencies and the Australian Competition and Consumer Commission are strengthening their critical systems and operations to address emerging AI-related threats. The Council will continue monitoring financial markets and may meet more frequently if circumstances require.
Australia's Council of Financial Regulators flags rising bond yields and AI-related cyber threats
Australia's Council of Financial Regulators said rising longer-term bond yields warrant close monitoring, although markets remain orderly and the domestic financial system is well placed to manage shocks. It urged financial institutions to strengthen resilience and flagged increasingly complex cyber threats from frontier artificial intelligence. The Council may meet more frequently if needed.