Business · India Bureau
Asian stocks slide as bond markets roil ahead of US jobs report
Asian equity markets declined following overnight volatility in global bond and currency markets, with US Treasury yields reaching their highest level in over two decades. The 10-year yield surged to 5.34%, capping the largest quarterly increase in three decades ahead of crucial US employment data.
LSN India ·
Asian shares retreated on Tuesday as investors grappled with sharp movements across fixed-income and foreign exchange markets. The benchmark 10-year US Treasury yield climbed to 5.34%, marking the highest level since 2002 and underscoring heightened market anxiety over interest rate trajectories and economic growth prospects.
The bond market volatility reflects broader concerns about inflation persistence and the Federal Reserve's monetary policy stance. The quarterly surge in yields represents the sharpest three-month climb in 32 years, signalling a significant shift in investor expectations regarding rate levels in the months ahead.
Markets remain on edge ahead of closely-watched US employment figures, which could provide critical insights into labour market strength and inform expectations for future Fed policy decisions. The employment data carries particular weight given ongoing debates about the sustainability of economic growth and inflation trends.
The turbulence in global bond and currency markets underscores the fragile sentiment gripping investors worldwide. Regional Asian markets have increasingly moved in sync with US Treasury movements, with higher yields in the world's largest economy typically prompting portfolio rebalancing away from emerging markets and riskier assets.