Global bonds were set for their worst month in years, with 10-year U.S. Treasury yields near 5.23% and poised for a monthly rise of nearly 50 basis points. Stocks were comparatively resilient, while the dollar was on track for a 2% monthly gain.
Global bonds wobbled and were set for their worst month in years, as deteriorating government finances, a glut of issuance and rising inflation weighed on markets. The 10-year U.S. Treasury yield held near 5.23%, its highest point since 2007, and was set for its largest monthly increase in about two years. Japan’s 10-year government bond yield was poised for a 42-basis-point quarterly surge.
Stocks were comparatively little fazed by rising borrowing costs. MSCI’s broadest Asia-Pacific shares index excluding Japan rose 0.4%, while Nasdaq and S&P 500 futures edged higher. Analysts cited upbeat corporate earnings, strength in the global economy and continued interest in artificial intelligence as factors supporting equity markets.
The dollar was on track for a 2% monthly gain, supported by higher U.S. yields. The euro traded near a 16-month low of $1.1336 and was set for a 2.4% monthly loss. U.S. crude rose to $89.55 a barrel and Brent to $103.13, with both set for monthly gains.
