Bond Selloff Deepens as Fed Rate-Hike Bets Build - Asia Market Wrap

Global bonds extended their selloff as strong US economic data and weak demand at a five-year Treasury auction pushed yields higher. The US 10-year yield held around 5.11% in Asian trading after Wednesday’s 15-basis-point surge, its biggest increase since the market turmoil following Trump’s April 2025 tariff announcement. The pressure spread across Asia Pacific, with bonds sliding in Japan, Australia and New Zealand, while emerging markets also weakened. The average yield on global government debt moved close to 4% as traders increased bets on further Federal Reserve tightening following last week’s first rate increase since 2023. Oil eased after its recent rally, with Brent falling around 0.7% to roughly $102 a barrel, offering some relief from concerns over higher energy costs. Asian equities remained under pressure, falling around 0.6%, while European equity-index futures pointed to further losses. Elsewhere, gold held losses after falling 1.7% in the previous session to around $4,290 an ounce as higher interest rates reduced the appeal of non-yielding assets. Mainland Chinese equities fell more than 1% even after Treasury Secretary Bessent said the US and China had agreed to e