Business · Markets · 1 hr ago
Rising bond yields pressure junior mining shares despite resilient commodity prices
Rising bond yields have put pressure on junior mining shares, which often depend on investors willing to fund future growth.
In Australia, the ASX Junior Resources Index fell about 11% from the start of September, according to Lowell Resources Fund chief investment officer John Forwood.
Over the same period, gold was down about 2.5%, copper fell 1–2%, and tin was roughly flat.
Higher yields can make shares with no regular income less attractive, while demand for some commodities, including copper and tin, has remained strong.
Forwood says the gap between share prices and commodity prices could create value, especially among companies with enough cash to keep operating.
Several smaller miners and explorers have raised large amounts of money in the past year, including companies focused on uranium, gold, silver, copper and tungsten.
The fund manager sees opportunities, but the story gives no specific next steps or outcomes for the companies mentioned.
Rising bond yields have pressured junior mining shares, with the ASX Junior Resources Index down about 11% since the start of September.
Commodity prices have generally held up better, including gold, copper and tin, according to Lowell Resources Fund chief investment officer John Forwood.
Forwood says the gap between resilient commodity prices and weaker junior shares may create value opportunities.
He sees potential in well-funded junior companies exposed to commodities including gold, copper, tin and tungsten.
- Who
- Junior mining companies and their investors are affected. John Forwood of Lowell Resources Fund discusses the market.
- What
- Rising bond yields have weighed on junior mining shares even as many commodity prices have remained resilient.
- When
- The share decline is measured since the start of September 2026. The article was published on October 12, 2026.
- Where
- The ASX resources market and global bond markets.
- Why
- Higher yields have pressured non-yielding, growth-focused junior shares, while commodity prices have been supported by demand and, for gold, central-bank buying.
This story does not have two clearly opposing sides.
The US 10-year yield was 4.14%, compared with 5.24% at the time of the article.
A 25-basis-point rate increase took Australia’s cash rate to 4.6%.
The ASX Junior Resources Index fell about 11%.
France’s 10-year yields were up around 5%, more than 130 basis points higher year to date.
The Reserve Bank was expected to discuss another rate increase at its next meeting.
- US 10-year yield
- 5.24%, around a 20-year high
- ASX Junior Resources Index
- Down about 11% since the start of September
- Australian cash rate
- 4.6% after a 25-basis-point hike in September
- Gold price
- Down around 2.5% over the same period
- Copper price
- Down 1–2% over the same period
- Raises cited
- FireFly Metals raised $180 million for copper-gold, according to the article
What people are saying
The ASX Junior Resources Index is down about 11% since the start of September, but it hasn’t had so much of an influence on commodity prices
The metal prices have been generally quite resilient. But the equity prices and particularly the more speculative end of the mining sector, the exploration sector, that’s been hit.
So many of them are well cashed up.
Sources
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