Treasuries extended recent declines and Asian bonds followed as concerns over US government spending and a flood of long-dated debt weighed on sentiment, while higher oil prices stoked fears of inflation.
Stocks and equity futures both fell.US 30-year yields rose two basis points to 5.32% — a level last seen in June 2007. Bonds in Australia and New Zealand dropped, while Japan’s 10-year yields climbed to multi-decade highs amid a global selloff that’s pushing up borrowing costs.
Oil prices advanced as prospects for peace in the Middle East dimmed, reviving concerns that prolonged geopolitical tensions will threaten supplies.
Global benchmark Brent rose 0.6% to $91.45 a barrel after President Donald Trump said he wasn’t interested in extending the expiring agreement with Iran and fighting flared anew in Lebanon.
“The combination of elevated oil prices, higher Treasury yields and renewed geopolitical risk is likely to keep markets volatile, with traders remaining particularly sensitive to any further updates from the Middle East,” Nick Twidale, chief market analyst at AT Global Markets, wrote in a note.
