{
  "id": 10904962,
  "title": "Bonds set for bruising September but stocks little fazed",
  "url": "https://urgent.news/2026/09/30/bonds-set-for-bruising-september-but-stocks-little-fazed-10904962",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-30T09:03:50.000Z",
  "source": {
    "name": "The Jakarta Post",
    "slug": "the-jakarta-post",
    "url": "https://www.thejakartapost.com/business/2026/09/30/bonds-set-for-bruising-september-but-stocks-little-fazed.html"
  },
  "original_language": "en",
  "account": "Global bonds endured a tumultuous September, hitting their worst monthly performance in years. This downturn was fueled by deteriorating government finances, an oversupply of issuances, and rising inflation, all exacerbated by the seven-month-old US-Israeli conflict in Iran that continues to escalate energy costs. In stark contrast, stocks remained largely unscathed by the surge in bond yields, with investors notably upbeat in Asia.\n\nThe escalation in borrowing costs has been a prime concern for investors, as sovereign yields serve as a crucial reference point for global markets, riskier stocks, and benchmarks for mortgages and corporate borrowing. In Asia, the 10-year US Treasury yield hovered near its highest level since 2007 at 5.23%, with a predicted rise of nearly 50 basis points (bps) this month, marking the largest increase in about two years. Japan's 10-year government bond was on track for a 42 bps surge this quarter, while the 2-year Treasury yield remained steady at 4.889% after Federal Reserve President John Williams questioned the likelihood of a sooner policy tightening. However, yields are still more than 50 bps higher than the norm for the month.\n\nCharu Chanana, chief investment strategist at Saxo, noted that this situation transcends a typical repricing of forthcoming central bank meetings, suggesting that we may be moving towards a structurally higher-yield regime. She emphasized that it will take a much higher hurdle for yields to return to the sustainable low levels that investors have become accustomed to following the Global Financial Crisis.\n\nWhile higher risk-free rates elevate refinancing costs for companies and dampen growth, its impact on stocks has so far been relatively limited. MSCI's comprehensive Asia-Pacific shares index, excluding Japan, experienced a 0.4% increase and was on course for a monthly decline of nearly 1%. Japan's Nikkei surged 2.1%, with a projected monthly gain of 0.8% and a quarterly drop of 4.7%, while South Korea's Kospi was set for a monthly rise of 0.7% and a quarterly decline of 19%. Nasdaq futures rose 0.13%, and S&P 500 futures increased by 0.24%. Euro Stoxx 50 futures climbed 0.77%, and German DAX futures edged up 0.76%, with FTSE futures adding 0.71%.\n\nResilience in equity markets can be attributed to robust corporate earnings, a thriving global economy, and the continued enthusiasm surrounding artificial intelligence. However, the equities market's positive reaction to the rise in bond yields has been notably surprising, particularly given the strong growth in nominal GDP driving earnings optimism. Many macro funds and institutional investors in New York were curious about the extent of bond yield increases, potential scaling back of capital spending by hyperscalers, and the timing of equity market reactions.",
  "summary": "The rise in borrowing costs has been front-and-center for investors, given that sovereign yields are an anchor for global markets, a reference price for investing in riskier stocks and a benchmark for mortgages and corporate borrowing.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "New Straits Times",
        "title": "Bonds set for bruising September but stocks little fazed",
        "url": "https://urgent.news/2026/09/30/bonds-set-for-bruising-september-but-stocks-little-fazed",
        "published": "2026-09-30T05:57:59.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}