Stocks, bonds slump over global rates angst

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Prices at the Pumps - May 29, 2024 #saltwire #pricesatthepumps #gasprices #fuel #canadaSINGAPORE - Asian stocks were a sea of red on Thursday and bonds slid on bets global interest rates would stay higher for longer, as investors looked to key inflation readings at the end of the week for further clues on the future path of monetary policy.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5%, tracking a negative lead from Wall Street and extending its 1.6% decline from the previous session. The main highlight of the week for markets, however, is Friday's U.S. core personal consumption expenditures price index report - the Federal Reserve's preferred measure of inflation. Expectations are for it to hold steady on a monthly basis.

U.S. Treasury yields meanwhile stayed elevated on Thursday, in part due to a weak debt auction the previous day. The benchmark 10-year yield was last at 4.6197%, while the two-year yield steadied at 4.9830%.Japanese government bond yields similarly notched fresh multi-year peaks, on growing expectations that further rate hikes from the Bank of Japan could be imminent.Elsewhere in Asia, Chinese blue chips eased 0.

 

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