HS JAPAN TPX100(03410.HK)

TREASURIES-US long bonds slide on Trump's tariff threat, Japan selloff

U.S. long-dated Treasuries experienced a sell-off, pushing yields to multi-month highs, influenced by President Trump's tariff threats and turmoil in Japanese government bonds. The 10-year yield reached 4.313%, the highest since late August, while the 30-year yield hit 4.914%. Analysts noted that Japan's weak bond auction and fiscal concerns contributed to the market's reaction. The yield curve steepened, indicating inflation concerns, as major EU states condemned the tariff threats. The Federal Reserve is expected to maintain interest rates steady in its upcoming meeting.

The case for global stocks over US equities is getting harder to ignore

The article discusses the shifting investment landscape, highlighting that global stocks are beginning to outperform US equities after a decade of dominance by the latter. Key factors include broad earnings growth across various sectors, with emerging markets expected to see significant profit increases. The concentration of US market capital in a few large tech companies raises concerns about sustainability. Additionally, the global impact of AI investments is noted, as countries like South Korea and Japan also benefit from this trend. Overall, the narrative suggests a potential rotation towards global diversification in investment strategies.

Japanese selloff, Greenland fears ripple through debt-ridden global bond markets

A surge in Japanese bond yields has caused a global selloff in bond markets, with U.S. and European yields rising sharply. Japanese 10-year yields increased by nearly 19 basis points, the largest rise since 2022, amid concerns over increased government spending following a snap election announcement. Additionally, tensions related to Greenland and U.S. tariff threats are pressuring European defense spending, leading to expectations of more bond issuance. Analysts warn that this situation could lead to a significant increase in global borrowing costs and further instability in bond markets.

Japanese Minister of Finance: Calls for market calm

Japanese Finance Minister Katsuyuki Kitamura: I hope the market calms down. We take a responsible attitude towards public finance. We have not implemented excessively loose fiscal policies. The reduction of the sales tax will not require the issuance of bonds. We will engage in dialogue with the Bank of Japan and many other parties to restore market confidence

The Japanese Minister of Finance calls for calm in the market