Japanese Bonds Rebound While US Stock Futures Climb – Asia Market Wrap
Japanese bonds recovered after a selloff that spread throughout global debt markets, and US equity-index futures climbed as volatility eased.
Yields on 40-year Japanese paper declined 22 bps to 3.99% after Finance Minister Katayama issued a calm plea following a sell-off that had driven super-long yields to all-time highs. Treasuries nudged up, and S&P 500 futures contracts rose 0.3% after the underlying measure suffered its largest drop since October, indicating that markets were regaining footing.
Meanwhile, stocks continued to decline, with Asian shares dropping 0.7% and European stock futures indicating a flat beginning. Haven demand remained strong, with gold and platinum setting new records and silver approaching an all-time high.
Trump’s vow to put tariffs on European countries that rejected his proposal to buy Greenland has spooked markets, prompting investors to reconsider risk after an AI-fueled boom sent global stocks to all-time highs. The selloff in Japanese bonds exacerbated the pressure, adding to tensions caused by uncertainty about US policies and trade.
Following the crash in Japanese bonds during the Asian session, markets in Europe and the US declined. Bond yields increased. Then there was reports that a Danish pension fund was planning to abandon the Treasury market.
