0500 GMT - Competition for capital and policy credibility issues are lifting term premiums for bonds, says Adam Donaldson, head of market strategy at Commonwealth Bank of Australia. This is over and above higher expected average cash rates stemming from a shift in the global savings and investment balance, he adds. Loose fiscal policy is part of that structural change, but there's unlikely to be a debt sustainability crisis unhinging markets, Donaldson says. Bond yields should start to recede in 2027 and curves flatten as interest rate hikes are delivered and credibility is bolstered, he adds. Still, they'll remain structurally higher, Donaldson adds.