Rising US bond yields a concern


There was no indication that the Fed would push back against the recent surge in bond yields, with Fed's chairman Jerome Powell (pic) only saying he would be “concerned by disorderly conditions”, without any hint of intervention.

ASIAN financial markets have been rattled again over the week as US Treasury yields continue to rise, bolstering demand for the US dollar, which has already risen to around three months high.

Concerns are growing in this region that the recent sharp increase in US bond yields –driven largely by higher inflation expectations which in a way suggest the eventual end to cheap money – could trigger a major sell-off in emerging-market assets.

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