Investors around the region ditched shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favour on growing fears about a US recession, sending global yields plunging.
US stocks futures fell and MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.4 per cent to a one-week trough in a broad sell-off in equities in the region.Japan's Nikkei tumbled 3.2 per cent to the lowest in two weeks and South Korea's Kospi index declined 1.6 per cent.Australia's market opened at 6195 points and within 15 minutes plummeted to 6130 to catch up with Wall Street's negative sentiment.
US 10-year treasury yields were last 1.9 basis points below three-month rates after yields inverted for the first time since 2007 on Friday. Historically, an inverted yield curve - where long-term rates fall below short-term - has signalled an upcoming recession.
Is that the Rabbitohs board ?