Asian Stocks Down, Bond Sale Enters “Deadliest Phase” By


© Reuters.

By Gina Lee – Asia Pacific equities fell on Friday morning as global bonds began to stabilize after an aggressive selloff that led to heavy losses in US equities. Japan fell 2.29% at 10:11 PM ET (3:11 AM GMT) and South Korea fell 2.67%. In Australia, it fell 1.88%. Hong Kong fell 2.18%. The city expects its first batch of the Pfizer Inc. (NYSE 🙂 / BioNTech SE COVID-19 vaccine on Saturday. China fell 1.62% while down 1.31%. The sell-off sent benchmark Treasury yields back below 1.5% when the Asian session opened on Friday, after 10-year Treasury yields rose as much as 23 basis points. up to 1.6% overnight. The rise accelerated when mortgage holders were forced to ditch government bonds. The US 10-year inflation-adjusted yield rose to its highest level since June 2020 and a warning sounded for riskier assets that benefited from ultralight monetary policy triggered by COVID-19. “The fall in fixed income is moving into a more lethal phase for risk assets … the rise in returns has long been seen primarily as a story of improving growth expectations, if at all, for increase risk assets, but the overnight movement notably included a sharp rise in rates and an advance of the expectations of a take-off from the Federal Reserve of the United States, “Westpac’s head of interest rate strategy, Damien McColough, told Reuters. As hopes for a global economic recovery from COVID-19 continue to grow, investors are turning from the winners of the COVID-19 era to those ready to profit from the end of the lockdowns. However, GameStop Corp (NYSE :). He saw his shares double at one point during the previous session before finishing 19% higher. Investors are still betting on that rally, but some are growing concerned. It is clear that rising inflation will cause central banks to withdraw their support for monetary policy. Concerns continued even as the Fed emphasized that there are no plans to tighten policy prematurely and that they reflect optimism. “It’s about interest rates… the technology has performed relatively better. As it led the way up, it will likely lead the way down as well, ”Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research, told Bloomberg. Earlier in the week, Fed Chairman Jerome Powell assured investors that the central bank would continue its ultra-flexible monetary policy and ignore the short-term rise in inflation in his testimony before Congress to early in the week. However, the market has almost fully priced in a first-tier hike by the end of 2022.

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