Bond market selloff rumbles on ahead of Trump and XI talks
European bond yields edged higher as oil prices climbed back above US$105 a barrel and traders awaited a potentially tense Donald Trump-Xi Jinping meeting in Washington.
World financial markets experienced a sharp selloff on Thursday due to concerns about the Iran war, inflation, and the forthcoming US-China summit. The 10-year US Treasury yield reached a post-financial-crisis high of 5.145%, while the yield difference between France and Germany widened to its widest since 2012. Strong PMI data and a weak US government bond sale added to the turmoil.
Inflation remains high, and central bankers are expressing hawkish sentiments, while the tech sector's funding needs compete with other macro issues. Additionally, there are unresolved geopolitical tensions arising from the Iran-Iran conflict. Oil prices surged above $105 a barrel, and traders are awaiting the outcome of the Trump-Xi meeting in Washington.
The MSCI world index suffered a significant decline following the 5% surge in the 10-year Treasury yield. Experts are concerned about the potential impact on stocks, citing historical precedents where such spikes led to halving of the MSCI world index value.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Bond market selloff rumbles on ahead of Trump and XI talks freemalaysiatoday.com
