Stocks wobble as bonds slump to monthly loss
TLT•Oil prices and bond yields rose as Asian equities slipped, while 10-year U.S. Treasury yields reached a 19-year high above 5.27%. Treasury bonds were headed for their heaviest monthly selloff in two years.
1. Yields climb, bonds fall
The 10-year U.S. Treasury yield rose above 5.27%, a 19-year high, and was up nearly 50 basis points in September. The 2-year yield gained more than 57 basis points during the month, nearing 5%, as traders priced in three more Federal Reserve rate hikes by the middle of next year.
2. Markets react to rates
Most Asian equity markets slipped, and bond markets in Japan, South Korea and Australia were under pressure. A $150 billion boost to Nvidia’s buyback plan helped steady U.S. stocks, while the Nasdaq fell 0.9%. Brent crude rose to $106.60 a barrel, and markets had fully priced in a Reserve Bank of Australia rate hike and another by February.
