Asian stocks rally as US Treasury steps in to ease bond fears
Asian markets saw a significant rally on Thursday (Aug 20) after the US Treasury announced it would double the amount of long-term bonds to reduce borrowing costs, following their surge to near two-decade highs this week. The unexpected move offered a much-needed boost for investors concerned about rising 10- and 30-year yields due to elevated inflation, government borrowing, and potential Federal Reserve interest rate hikes.
As soon as the announcement was made, US equities rebounded and ended higher, while the dollar fell against its counterparts. The demand for US Treasury bonds had been surging since the 30-year yield hit its highest level since June 2007, before the global financial crisis.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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