"" Bond Yields Reach 20-Year High
Bond yields surged to their highest in decades on Tuesday, with the US 30-year Treasury bond rising as much as 1.1 basis points to an intraday high of 5.321%, its highest in almost 20 years.
The yield on the US 10-year Treasury bond also rose, trading up 0.4 basis point at 4.724%. Analysts at ING noted that this move is not being followed by the typical soothing words from the Trump administration, suggesting no imminent resolution to the war with Iran.
Oil Prices Continue to Rise
Oil prices extended their rally for a third consecutive day in Asian trade, with Brent crude futures edging up 0.4% to $91.20 a barrel. This is the latest in a series of gains for oil prices, which have been driven by concerns over global tensions and supply disruptions.
Stocks in Asia Take a Hit
Stocks in Asia gave up early gains following the expiration of a US-Iran ceasefire. The S&P 500 e-mini futures slumped 0.2%, while MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.3%. The Nikkei 225 fell 1.6%, while South Korea's KOSPI erased an early gain of more than 3%.
Global Macro Trends
Analysts at MUFG noted that the recent global selloff in bonds has deepened, with the yield on the 10-year Japanese government bond rising 2 basis points to 2.94%, a three-decade high. This is part of a broader trend of increased stickiness in longer-end developed market yields.
Cryptocurrencies Take a Hit
Cryptocurrencies also took a hit on Tuesday, with bitcoin and ether both down 0.3% at $64,159.76 and $1,899.34 respectively. This is the latest in a series of losses for cryptocurrencies, which have been driven by concerns over global economic trends and market volatility.
Market Reaction
The US dollar index was up 0.1% at 99.60, pulling back from a two-month low. Gold was down 0.3% at $4,402.89, snapping a two-day winning streak. Overall, markets adopted a generally risk-off tone following the expiration of the US-Iran ceasefire.
Categories: [bitcoin, markets, regulation] Tags: us-iran-ceasefire, bond-yields, oil-prices, stocks image_prompt: bold graphic of a US dollar bill with a red X marked through it, symbolizing the expiration of the US-Iran ceasefire.