Asian equities fell to eleven-month minimums on Wed when worldwide bond rates reached 16-year peaks.  Putting pressure on valuations for stocks and dampening enthusiasm for risky investments generally.

Asian Stock Markets Rattled on Wednesday

The rise in treasury yields propelled the US dollar to fresh highs. Despite the yen resisting on rumors that Japans officials were acting behind the curtain.

On Tuesday’s trading session in London, England, the yen broke over the 150 vs the dollar barrier prior to surging to 147.3 level

There has been no official word from Tokyo, Japan during Asian period. Wherein the finance minister and chief financial envoy issued no formal comments on their choice. The yen was recently trading at 149.18 vs the US dollar

Higher-than-projected, statistics on work open positions in the United States propelled the 10-year bond yield higher around twelve (bps) on Tuesday. While it surged up to four bps in Asian trade. Temporarily exceed 4.85 percent for the first occasion since the year 2007.

Tresury and Bond Rates

For the 2nd day in a row, MSCI’s largest gauge of the Asia-Pacific region equities beyond Japan fell over one percent. The Nikkei 225 index in Japan lost 1.8 percent.

The S&P 500 futures lost 0.3 percent, while European markets futures declined 0.2 percent.

Based on the risk-free rate of return so elevated, it isn’t very appealing individuals to steer their money away from immediate term liquid-cash based investing. On Tuesday, the S&P 500 lost 1.4 percent.

US Stock Indices & US dollar in Asian Session

Rising rates on longer-term US Treasury securities, according to the Federal Reserve, are not alarming.

In the commodities sector, the dollar’s strength has dragged on the cost of oil, while increased yields put pressure on gold. The Brent crude futures were recently stable at $90.87 per barrel. After reaching an eleven-month top of $97.69 the previous week.

Forex Market Rates