Asia Bond Rates: Stormy Tuesday in Asia sent bond rates to levels not seen since the decade’s peak. New levels hadn’t been introduced since 2007. The rapid jump in interest rates spooked the market, leading to rumors that the artificially high rates had been retained longer than thought. When the “risk-free rate” rose, investors were less optimistic about stocks as Chinese markets recovered.
The 10-year US Treasury note yield, a market trust indicator, rose 2.5 basis points to 4.366% in Tokyo’s early session. This spike, the largest since 2007, warns seasoned buyers that bond rates rise when prices fall. This is because bond rates rise as prices fall. Ten-year U.S. government bond yields rose roughly 40 basis points this month.
However, Asia has some shining spots. The broad MSCI average of Asia-Pacific shares excluding Japan rose 0.4% last week. The Chinese market’s unpredictable but clear rise was the main factor. The Nikkei index of Japan rose 0.5% due to a weaker yen and bullish Wall Street indicators. The positive attitude didn’t last long, as the S&P 500 futures lost 0.2% in the trades that followed.
Due to its volatility, investors are watching the bond market. Real rates, which account for inflation expectations, have skyrocketed despite no evident explanations and little inflation forecasting. This is because real yields consider inflation expectations.
Mizuho Bank head economist Vishnu Varathan said this huge spike may affect lending and capital flows. US 10-year real rates have risen 300 basis points since September, a significant change. This leaps far. This is the largest target federal funds rate change in 25 years. Additionally, what Federal Reserve Chairman Jerome Powell says in the near future could lower them further.
Read More: US Economic Growth Trends: Unraveling the Surprising Patterns
Asia was not alone in this output change. It happened worldwide. Japan’s 10-year yields reached 0.66 percent, the most in six years, as national debt yields rose globally. This was Japan’s best 10-year return in six years. This was Japan’s highest in six years.
Even though China’s economy was worsening, Hong Kong’s Hang Seng Index managed to recover from a week-long decline. Seven days had passed since fall began. The right officials’ vague assurances of support haven’t built trust. The index’s 1% opening rise proved hard to maintain, and by midmorning it had gained 0.5%.
BHP Group’s share price declined 1.3% after the company reported its lowest annual profit in three years. It still expects Chinese demand to climb by year’s end.
China decreased interest rates slightly, but markets worldwide are still unhappy. State-owned banks in China are selling dollars as the yuan approaches its all-time low. The value of the Japanese yen is being constantly monitored since it is falling, which could signal the government needs to intervene.
European currencies maintained their strength. Euro closed the day at a cheerful $1.0906. However, Australia and New Zealand currencies are carefully approaching their lowest levels in nine months. The euro ended at $1.0906.
Brent crude oil reached a record high in August. Since then, it’s dropped to $84.42. Gas prices in Europe rose due to the possibility of an Australian LNG plant strike. Around the world. The average Dutch price rose 50% in August.
Nvidia, a semiconductor maker, is popular in technology. The company’s report is out Wednesday. In anticipation of the news, the stock rose 8.5%.
Our Reader’s Queries
What is the interest rate on Chinese bonds?
The yield for the China 10Y Government Bond currently stands at 2.550%. Please wait for the video player to load.
Which country has the highest bond interest rate?
Discover the world’s top yielding government bonds as of September 2023. Argentina leads the pack with a staggering 40.45% interest rate for one year. Egypt follows closely behind with a 26.8% interest rate for six months, while Turkey offers a 21.7% interest rate for two years. Other countries on the list include Kenya, Brazil, Namibia, India, and Bahrain. These high-yielding government bonds offer investors an opportunity to earn significant returns on their investments.
What is the interest rate on bonds in Thailand?
As of 11 Aug 2023 at 2:15 GMT+0, the yield for the Thailand 10 Years Government Bond stands at 2.576%. This information is crucial for investors who are looking to make informed decisions about their investments. With this yield, investors can determine the potential return on their investment and make adjustments accordingly. It’s important to stay up-to-date with the latest bond yields to ensure that you are making the most of your investments.
What is the yield of the China 3 month bond?
As of 6 Jun 2022 8:27 GMT+0, the China 3 Months Government Bond is yielding at 1.537%.