Bond selloff slows but stocks wobble

According to Business Recorder, global bond yields stayed close to multi-decade highs on Wednesday as worries about mounting sovereign debt pushed borrowing costs up and unsettled equity markets worldwide.

The US long bond yield touched 5.3371% on Tuesday, its loftiest level in almost two decades, before easing to around 5.28% in Asian trading. The 10-year and 30-year bund yields reached their highest since 2011, while the French 30-year yield has climbed close to 50 basis points since the end of June. Japan's 10-year yield, once at zero, is nearing 3% as inflation rises and investors question whether policymakers are acting fast enough.

Brent crude futures remained above $90 a barrel with no sign of progress on a deal to reopen the Strait of Hormuz to tankers. MSCI's index of Asia-Pacific shares excluding Japan dropped 1.7%, while the Nikkei fell 2.6% after tech-led losses on Wall Street. Investors are also awaiting Federal Reserve minutes from the July meeting, where Chair Kevin Warsh gave few hints on how the bank might respond to persistent inflation.