Bond selloff pressures stocks as oil crosses $91 a barrel

Business Recorder reported that government bond yields across major economies reached new highs on Tuesday, as a fresh round of hostilities in the Middle East pushed crude above $91 per barrel and weighed on equities worldwide. The 10-year US Treasury yield gained 2.2 basis points to nearly a 20-month peak of 4.78 per cent, while Japan's 10-year benchmark neared 3 per cent, a level unseen in a generation.

Equity markets in Asia opened lower, with Japan's Nikkei down 0.2 per cent and the Hang Seng off 0.7 per cent, while US futures held firm after a slight overnight dip on Wall Street. Traders are wary of Friday's US jobs figures, which could pave the way for rate hikes as soon as this month. Federal Reserve Chair Kevin Warsh has also signalled in a recent speech that policymakers may act if price pressures persist.

Elsewhere, German and French long-dated bond yields touched 15-year highs on Monday, and wheat trades near three-year highs as Russia and Ukraine stepped up fighting. Shein shares in Hong Kong dipped toward an offer price already reduced in earlier fundraising, following a weak trading debut for the fast-fashion retailer. A BNY strategist said hawkish policy, geopolitical risks and fiscal concerns together keep upward pressure on long-end yields.