Treasury yields havoc prevails in Asia, 10-year JGB poke October 2018 top


  • Global bond coupons keep rallying in Asia, stocks remain on the back-foot.
  • 10-year JGB yields cross 0.15% mark, its counterparts from Australia and New Zealand jump to April 2019 levels.
  • Fed, RBNZ and RBA try their best to tame the bond bears but markets don’t list.

Thursday’s global bond rout extends to Asia during early Friday as the Treasury yields from Japan, Australia and New Zealand remain on the front foot while challenging the multi-month high.

10-year Treasury yield on the Japanese Government Bond (JGB) recently crossed the 1.5% mark, at 0.152% now, to probe the October 2018 peak. Also on the same line were bond coupons from Australia and New Zealand that poke April 2019 levels despite the RBA and RBNZ efforts to placate the bears.

In its latest efforts, RBA bought 3-year government bonds worth three billion Australian dollars whereas the RBNZ Governor Adrian Orr rekindled the monetary policy status-quo for a prolonged period.

Elsewhere, the US 10-year yields waver around 1.52% after refreshing the yearly top with 1.563% the previous day. It’s worth mentioning that the Fed members, including Chairman Jerome Powell, recently tried to tame the Treasury yield rally while saying that they are neither concerned nor should be about the surge in the yields.

Due to the bond havoc, Wall Street benchmarks flashed notable losses while S&P 500 Futures currently marks 0.40% losses after marking the heaviest drop in a month the previous day. The Treasury yields run-up also favors the US dollar buyers and negatively affects the commodities as well as Antipodeans.

Read: Gold Price Analysis: XAU/USD extends the heaviest drop in three weeks below $1,800

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