US 10-year Treasury yields topped 5.27%, a 19-year high, as oil climbed to $107 a barrel and stocks fell. Australia raised its cash rate to a 15-year high, while investors bet on further increases.
Bond yields and oil prices rose, pressuring stocks as investors braced for short-term borrowing costs to remain at their highest levels in years. The US 10-year Treasury yield topped 5.27% on Monday, its highest in 19 years, after rising nearly 50 basis points in September; the two-year yield approached 5% after gaining more than 57 basis points this month. US equity futures fell 0.2%, and most regional markets slipped.
Australia raised its cash rate to a 15-year high, as expected, and market participants have bet on further increases. The Reserve Bank of Australia cited materialising upside risks to inflation, including an energy supply disruption and growth and inflation running higher than expected. Brent crude climbed to $107 a barrel.
Nvidia’s $150 billion boost to its buyback plan lifted its shares and helped limit the Nasdaq’s fall to 0.9% on Monday. In China, technology stocks remained fragile after US plans to ban Chinese components from data centres, leaving the CSI300 at a one-year low.
