Bond yields keep falling in Asia as traders fret about looming recession
Some markets in the region manage to steady after an early sell-off, but concern about the health of the global economy weighs on sentiment
Sydney — Global bond yields continued to spiral lower in Asia on Thursday as recession fears fed expectations of more policy easing by major central banks, though some share markets in the region did manage to steady after an early sell-off. Sterling was also hit by a bout of Brexit blues after a round of votes in the UK parliament failed to produce any new plan to manage its divorce from the EU. A Reuters report that the US and China had made progress in all areas in trade talks seemed to bolster sentiment a little, though sticking points still remain and there is no definite timetable for a deal. MSCI’s broadest index of Asia-Pacific shares outside Japan recouped early losses to be almost flat, as did Shanghai blue chips. Japan’s Nikkei still fell 1.4%, while E-Mini futures for the S&P 500 were off 0.2%. Worries that the inversion of the US Treasury curve signalled a future recession only deepened as 10-year yields fell to a fresh 15-month low at 2.34%. “We think that the ongoing ...
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