Treasuries Stabilize After Whipsaw Trading, Dollar Dips – Asia Market Wrap
Treasuries stabilized after two days of whipsaw trading as investors questioned whether US efforts to contain long-term borrowing costs through buybacks would offer more than a temporary reprieve. The Dollar weakened.
Yields on 30-year bonds held at 5.25% after sliding 9 bps Wednesday, then jumping 6 bps the following day as investors reacted to the Treasury’s plans to boost debt buybacks. Yields rose Thursday even as Treasury Secretary Bessent flagged scope for larger repurchases and a fiscal plan.
Bonds fell in Japan, Australia and New Zealand, following Thursday’s decline in their US peers. The Dollar slipped against all its Group-of-10 peers before US manufacturing PMI data that may give investors more insight into the health of the world’s biggest economy.
As bonds stabilized, MSCI’s Asia Pacific stocks gauge rose 0.5% and equity-index futures pointed to gains on Wall Street. European shares were set for a tepid start after seven days of losses, their longest losing streak since September 2023.
Elsewhere, the Yen was little changed after Japan’s key price gauge accelerated for a second month, keeping the central bank on track for another near-term rate hike.
Brent crude dropped 0.4% to about $93.42 a barrel, snapping a five-day rally. Gold rose 0.6% to about $4,545 an ounce, on track for a third weekly gain. Bitcoin surpassed $70,000 for the first time in over two months after Trump met with crypto industry leaders.
