Asian bond yields rise despite oil decline as caution reigns
Selloff in U.S. government bonds spilled over into Asian debt markets, but oil fell as traders weighed reports of potential proposal to reopen Strait of Hormuz
Asian government bond yields continued to climb on Friday amid a decline in oil prices and ongoing tensions in the Middle East. U.S. Treasury yields hit levels not seen since 2007, prompting concerns about tighter financial conditions and potential economic slowdown. Japanese 10-year bond yields surged to a multidecade high of 3.110%, while Australian and New Zealand 10-year yields rose by 3.4 and 3.3 basis points respectively, to 5.403% and 5.104%.
Energy prices were a major driver, with the Middle East conflict reigniting fears of inflation and higher interest rates. Market participants remained cautious due to the history of stalled negotiations between the U.S. and Iran. Regional equities were mixed, with many markets closed for holidays. Hong Kong's Hang Seng Index fell 1.6%, Australia's S&P/ASX 200 dropped 0.6%, and Japan's Nikkei Stock Average rose 0.8%.
Gold and silver prices slipped as higher yields made non-yielding assets less attractive. The dollar remained strong, further pressuring Asian currencies. Bitcoin struggled, trading below $85,000 as investors focused on yield and rate expectations. The recent Chinese summit between President Xi Jinping and President Trump yielded no major breakthroughs, leaving unresolved issues like tariffs and technology restrictions. The next major test for markets will be the APEC Summit in Shenzhen.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
