Japan's 10-year government bond yield rose 8 basis points to 3.06% on Thursday, its highest since 1996, after a U.S. Treasury sell-off. Asian equities were mixed as investors weighed Middle East tensions and U.S.-China trade talks; oil eased from recent highs.
The U.S. 10-year Treasury yield held at 5.11% after reaching its highest level since 2007 overnight. Japan’s 30-year yield rose 5.5 basis points to 4.12%. The MSCI Asia ex-Japan index fell 0.64%, while the Nikkei gained 1.73% and Australia’s S&P/ASX 200 dropped 1.2% to a more than three-month low.
Markets also awaited central-bank remarks and U.S. data for clues on rate moves. Fed Governor Michael Barr said Wednesday the Fed’s recent rate hike was part of efforts to recalibrate borrowing costs and signaled more increases may be needed. At the U.N. General Assembly, Iranian officials communicated with U.S. envoys, but both sides signaled little progress toward ending the conflict. Treasury Secretary Scott Bessent said Washington and Beijing had reached a deal to extend their 11-month trade truce as Trump greeted Xi for a summit. Brent fell 1% to $102.05 a barrel and U.S. WTI fell 0.74% to $91.48.
