Asian stocks dip as US yields revisit highs on hawkish Fed

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The 10-year Treasury note yield surged to 4.552%, reaching a level not witnessed since October 2007.

Traders see a 50-50 chance of a Federal Reserve quarter-point hike in January and expect rate cuts to start in the summer.

Westpac strategists see risks skewed toward even higher yields in the near term, pulling up the dollar as well. The Fed surprised markets last week by suggesting more tightening may be in the pipeline, and projected high rates to stay in place for longer than investors had anticipated.

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