Money Market

Bonds Extend Their Slide, Asian Equities Retreat

Japanese bonds joined a global debt slump as a rush of corporate-debt sales and concerns over developed-world budgets dragged down European fixed-income securities and Treasuries.

Higher yields weighed on equities, pushing Asian shares to their lowest level in three weeks.

Yields on 20-year Japanese government bonds rose to levels last seen in 1999 while those on the 30-year maturity jumped to the highest since their debut.

Longer-dated German bond futures slipped for a fifth straight session. US 30-year bond yields held close to 5% after a spike on Tuesday that weighed on Wall Street.

The yen weakened amid political uncertainty in the country while a gauge of the dollar rose for a second day.

Treasuries slumped Tuesday, tracking declines in longer-maturity European bonds at the start of a month that is historically tough for debt markets.

The vulnerability of global long-dated government debt reflects the accumulation of heavy spending, which requires rising bond sales to finance, and an overall trust deficit in sovereign debt.

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