Singapore Thursday saw a decline in risk appetite among investors, which led to a decline in Asian stock markets. As investors expected the Federal Reserve to keep raising interest rates quickly, Treasury yields went up.
After hitting a new 32-year low of 149.93, the Japanese yen is now dangerously close to the psychological threshold of 150 per dollar.
Despite disappointing housing data, the yield on the 10-year U.S. Treasury note reached a new 14-year high. U.S. 10-year rates last increased to 4.139%, which is higher than the previous high of 4.136%.
Taylor Nugent, a market economist at National Australia Bank in Sydney, stated that “yields surged to fresh cycle highs and risk appetite soured,” adding that hawkish language from central banks also weighed on sentiment.
Wall Street ended a two-day winning streak on Wednesday, and the dollar recovered from two-week lows.
A more than two-year low of 436.0 was reached by MSCI’s largest index of Asia-Pacific shares outside of Japan (.MIAPJ0000PUS), which was down 1.6% at 437.16.