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Asian stocks weather bond storm, oil retreats slightly
Reuters • • general
Key Points:
- Asian shares remained steady despite a sharp selloff in global bonds, which pushed long-dated US Treasury yields to two-decade highs, increasing borrowing costs and threatening high equity valuations.
- Brent crude oil prices eased 1.2% to $105.3 a barrel after recent gains, but oil remaining above $100 per barrel has intensified inflation concerns and strengthened bets on multiple Federal Reserve rate hikes.
- US 10-year Treasury yields reached a 19-year peak at 5.2251%, while 30-year yields hit their highest since 2004, contributing to a rise in US mortgage rates to 7%, which is negatively impacting the housing market.
- Central banks globally are adopting a more hawkish stance amid inflation pressures, with Norway raising rates and Sweden signaling potential hikes, while the US Federal Reserve is expected to continue tightening monetary policy.
- The US dollar strengthened about 1% this week against major currencies, though it retreated slightly against the yen following concerns raised by US President Trump about yen weakness during a summit with Japan.
