A global bond selloff intensified, jolting investors as robust US economic data and weak demand at a debt auction drove Treasury yields across much of the curve to their highest levels in almost two decades. The bruising losses on Wall Street swept into Asia Pacific with bonds sliding in Japan, Australia, New Zealand, as well as emerging markets. The US 10-year yield steadied at 5.11% in Asian trading, after Wednesday’s 15-basis-point surge, the biggest since the turmoil triggered by President Donald Trump’s April 2025 tariff announcement. Weak demand at an auction of five-year notes had pushed the yield above 5% for the first time since 2007. A Bloomberg gauge of the dollar hovered around levels last seen in July as traders priced in more interest-rate hikes by the Federal Reserve. Oil offered some relief, with Brent paring Wednesday’s rally to trade 0.7% lower at around $102 a barrel, but stocks barely benefited. Asian shares tracked Wall Street benchmarks and fell 0.6%, and equity-index futures indicated losses may extend to Europe as well. The prospect of higher energy costs colliding with a still-strong US economy is adding pressure to a bond market already rattled by weak auction demand and concerns that interest rates will stay elevated. As Treasury yields surged — the average yield on global government debt to within a whisker of 4% — traders ramped up bets on further Federal Reserve tightening following last week’s first rate increase since 2023. Swaps now fully reflect three quarter-point hikes over the next year, with significant hedging for a fourth. If realized, that would take the central bank’s target rate into a range of 4.75% to 5%. Officials raised borrowing costs last week to a range of 3.75% to 4%, a move Fed Chair Kevin Warsh said removed a “dose of accommodation.” Fed Governor Michael Barr said further rate hikes are likely needed to return inflation to the central bank’s 2% target. In other corners of the market, gold held its losses from the previous session, when bullion fell 1.7% to about $4,290 an ounce. The non-yielding commodity’s appeal lessens as interest rates rise. Equities in mainland China fell over 1% even as US Treasury Secretary Scott Bessent announced that the US and China sealed a two-month extension to their trade truce. President Xi Jinping landed in America for his first state visit in 11 years. Some analysts said the US-China agreement to extend a trade-war truce until Jan. 10 removes an immediate source of uncertainty, but that material progress is needed to dispel further overhang. US diesel futures jumped as the Trump administration worked with refiners to voluntarily curb exports of the product as an alternative to an outright ban on overseas shipments. In Japan, the 10-year yield climbed 10 basis points to the highest since 1996. Its Australian counterpart posted the steepest increase in almost two weeks, while New Zealand’s equivalent recorded its biggest jump since early March. The sharp rise in yields has put the Fed’s rate path back at the center of attention. In projections released after last week’s decision, officials penciled in another increase before year-end, according to the median forecast. The median projection for 2027 showed no additional hikes next year, though eight officials saw the benchmark rate ending the year half a percentage point above current levels. US After Hours P +8.4% higher on earnings; SFIX -17.7%, TRU -1.9% lower on earnings
Nikkei +1.18% Hang Seng -0.46% CSI -1.44% Kospi Closed Shanghai -0.92% Shenzen -1.60%
Eur$ 1.1385 CNH 6.7154 CNY 6.7146 JPY 157.98 GBP 1.3242 CHF 0.8241 RUB 84.6923 TRY 48.8539 WTI$ 91.54 -0.58% Gold 4,289 +0.03% BTC 84,142 -0.12% ETH 2,690 +0.68%
S&P -0.37% Nasdaq -0.45% EuroStoxx -0.54% FTSE -0.38% Dax -0.46% SMI -0.47%
Macro :
- Xi and Trump Seek Safe AI Without Slowing Race for Supremacy
- Jane Street Set to Double London Office Space, FT Reports
- Electric-Car Sales Soar 52% in Europe With Fuel at Record Highs, EU August Car Registrations Rise 4.5% Y/y to 0.708m Units
- US Not Preparing for 90-Day Diesel Export Ban: Reuters
- Anthropic Leaders Back Startup Developing System to Detect Biological Threats -- WSJ
- Marc Lasry Hunts for Up to $3 Billion to Turbocharge Sports Bets
- Morgan Stanley Investment Bank Deal List Leaked in Email
- Hurricane Watch Posted on Hawaii’s Big Island as Nolo Approaches
- US Chose Firm With ‘High’ Financial Risk for Air Traffic Revamp
- Bitcoin Bulls Eye Next Leg as $15 Billion Options Expiry Nears
Keep an eye on :
- ABNB US : OpenAI Gives Airbnb Wider Access to Frontier Models
- AMBA US : Ambarella Shares Rise on Report of Potential US Strategic Buyer
- AT/ LN : Ashtead Tech Surges on 615p/Share Takeover Proposal From Ember
- ACB CN : Aurora Cannabis Seeks Order to Make Curaleaf Address Bid Issues
- BA US : Turkish Airlines to Buy Up to 150 Boeing 737 Max Jets
- BA US : Biman Bangladesh Orders 11 Boeing Planes
- CNE LN : AO World Sees 1H PBT Up Over 20% to ~£21.5m
- CON GY : Tuhu Car to Buy Mycar Tyre & Auto From Continental
- CVX US : Oil-and-Gas Industry, Lobby Launching Effort to Defeat Diesel Export Ban -- WSJ
- DIOR FP : Arnault Group Mulls Tender Offer for Rest of Christian Dior
- CRISPR US : Biotech Stocks Fall as Claude Discovers CRISPR-Like Enzyme
- CVSG LN : CVS Group FY Revenue Meets Estimates
- AM FP : Dassault Signs Portugal Pact as Rafale Seeks F-16 Replacement
- LLY US : InnoCare Pharma Signs Research and License Deal With Eli Lilly
- ENI IM : Egypt urges Eni to accelerate development of Denise gas field
- FSLY US : *FASTLY EXTENDS GAIN TO 20%, MOST SINCE AUGUST 10
- F US : Chinese Carmakers May Take More Than 10% of US Market If Let In
- FCT IM : Fincantieri’s VARD Signs Contract With Dong Fang Offshore
- GRAL US : Grail’s Cancer-Detecting Blood Test Wins FDA Panel Backing
- HMB SS : H&M 3Q Operating Profit Beats Estimates
- FUL US : HB Fuller Narrows FY Adjusted Ebitda Forecast
- HAFNI NO : Hafnia to Raise ~$300m in Ordinary Share Offering
- HMB SS : Reuters: The billionaire family behind H&M is quietly increasing its stake, fueling speculation it could take the fast-fashion
- INTEAB SS : Intea Fastigheter Holders Offer 20.1m Shares, Intea Fastigheter Offering by Holders Prices at SEK28/Share
- IDUNB SS : Idun Industrier Rated New Buy at SB1 Markets; PT 380 kronor
- KNF US : Starboard Takes Stake in Knife River, Plans to Push Margin Improvement or Sale -- WSJ
- LMT US : *CHINA IS HOLDING SENSITIVE F-35 PARTS DIVERTED TO HONG KONG
- MBG GY : Mercedes Seeks to Cut €800m in Labor Costs in Germany, WiWo Says
- META US : Meta Introduces Palm-Sized Device to Use Muse AI on the Go (2)
- MGM US : *MGM RESORTS SHARES DROP 6% ON REPORT DILLER IS WITHDRAWING BID
- BMPS IM : Monte Paschi CEO Lovaglio Says His Twin Deals Aren’t Complex
- NEOV US : NeoVolta (NEOV) Shares Tumble 16% After Hours: Here’s Why
- Open AI IPO : OpenAI Model Hacked Australian Government’s Health Website
- OVS IM : OVS 1H Adjusted Net Sales EU877.4M Vs. EU792.9M Y/y
- PSKY US : Paramount Weighs Tapping Musk for Equity Investment: Semafor
- PM US : *PHILIP MORRIS, ALTRIA SHARES GAIN ON WSJ REPORT
- PINF IM : Pininfarina Board Starts Review of PF Holdings Takeover Offer
- QDT FP : Quadient 1H Ebit EU50M Vs. EU61M Y/y
- RIO LN : Russian Court Backs Rusal Claim on Rio’s Oyu Tolgoi: Kommersant
- SAMPO FH : Finland Sees No More Share Sales as €4.7 Bln Investments Funded
- SU FP : Schneider Electric Plans to Buy Shelly Group for €70/Share
- SLYG BU : Schneider Electric Plans to Buy Shelly Group for €70/Share (10% premium)
- ENR GY : Siemens Energy to Launch up to 2B Euro Treasury Share Buyback
- 9984 JP : SoftBank Pays Record Yields to Become Goliath of Junk Bonds
- STLA US : Stellantis Pauses White-Collar Hiring: Detroit Free Press
- TRI FP : Trigano FY Revenue Meets Estimates
- VBK GY : VERBIO FY Sales Beat Estimates
- VKTX US : Viking Therapeutics Offers Shares for Up to $38 Each: Terms
- VOW GY : Bentley Unveils First Electric Car, a Merino-Lined Luxury SUV
- YIT FH : YIT Doubles Revenue Growth Target on Finland’s Data Center Boom
- ZEG LN : Zegona To Return €400m to Shareholders Through Dividend, Buyback