The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
May 6, 2025 DOWNLOAD
View all Reports
Equities 3 MIN READ

Will Wall Street bounce trump latest yield surge?

September 25, 2023By Reuters
Related Articles
Middle East uncertainty after Iran attack makes for tricky trading October 3, 2024 US yields retreat after weak retail sales data February 17, 2025 US debt ceiling crunch threatens to roil complacent stock market May 23, 2023

Sept 26 – Asian markets on Tuesday might take heart from Wall Street’s impressive late show on Monday, but with the dollar and US Treasury yields continuing their relentless march higher, the bigger picture looks much more ominous.

Add to that another wave of turbulence to rock the Chinese property sector and the yen sliding closer to 150 per dollar with still no intervention from Japanese authorities, and caution will probably suppress whatever risk appetite investors have.

Global shares, as measured by the MSCI World Index, may only have dipped less than 0.2% on Monday but it marked the seventh decline in a row, the index’s worst run since late August-early September last year.

The MSCI Asia ex-Japan index also fell by a heftier 0.7%.

Wall Street’s three main indexes rose, however, and the S&P 500 and Nasdaq’s gains of 0.4% were particularly impressive given the latest leap in US bond yields to new multi-year highs.

The back end of the US yield curve is where the action is – the 10-year yield rose 10 basis points on Monday to 4.55%, the highest since 2007. As analysts at Deutsche Bank note, this is also historically significant territory – the 10-year yield’s average going back to 1799 is around 4.50%.

The 10-year inflation-adjusted ‘real’ US Treasury yield is also breaking new ground, climbing further above the 2% level. Analysts at Barclays point out that rising long-term US real rates, especially after a Fed policy meeting, put emerging market currencies under near blanket pressure.

This largely played out on Monday – China’s yuan slid back to a two-week low – and the dollar’s broad value against a basket of major currencies hit its highest since November.

The basic ingredients of a tightening in emerging market financial conditions are in place, and this is exactly what is underway. Goldman Sachs’ financial conditions indexes for China and emerging markets at large are the highest in almost a year.

In China, meanwhile, the property sector is back under the spotlight after shares of property developer Evergrande tumbled 21% on Monday on renewed uncertainty about the firm’s debt restructuring. The broader property sector index fell 2.5%.

Evergrande shares are virtually worthless, but the company is systemically important – it is the world’s most indebted developer and the property sector accounts for roughly a quarter of China’s economy.

Recent headlines surrounding China’s trade disputes with major trading partners like the US and European Union have been mostly negative, but there appears to be some progress in EU-China talks between EU trade commissioner Valdis Dombrovskis and officials in Beijing, even if they are only baby steps.

Here are key developments that could provide more direction to markets on Tuesday:

– Japan services PPI inflation (August)

– Singapore manufacturing output (August)

– Fed’s Neel Kashkari speaks

(By Jamie McGeever; Editing by Josie Kao)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up