Rise in 10-year Government Bonds - Questions

[Willo]

Hey all, new here.

I've been following the unfolding economic meltdown in the United States and here in Aus/NZ, and recently been looking at the US bond market where Bernanke is trying desperately to contain from breaking out.

I've learnt that the 10-yr treasury note is one of the most important indicator on the US' financial health since if it gets out of control, mortgage payers will eventually be paying higher repayments.

I've noticed the NZ 10-yr has been rising of late while the 1-yr bond has stayed weak.

Is this maybe one of the reasons NZ banks are rising mortgage rates? (the rise in 10-yr bonds...)

Does it work the same following this index as you would with the US?

Hopefully i'll get a better understanding of this stuff.

Thanks

10 yr yield: