Stories
US-Iran Tensions Sink Asian Markets, Bonds Plunge Amid Inflation Fears
C
CNBC TV18•29-09-2026, 07:01
US-Iran Tensions Sink Asian Markets, Bonds Plunge Amid Inflation Fears
- •Asian markets are trading lower, with Japan's Nikkei 225 down over 1% and TOPIX down 1.50%, as high crude oil prices weigh on recovery.
- •Asian bond markets declined, aligning with Treasury securities, due to heightened crude oil prices from US-Iran tensions, fueling inflation concerns and expectations for Federal Reserve rate hikes.
- •The principal 10-year Treasury yield surged to a 19-year peak of 5.27%, reflecting a comprehensive market decline and anticipation of continued monetary tightening.
- •Crude oil prices rose, with US crude up 0.6% to $93.12 per barrel, as prospects for a diplomatic resolution in the Middle East diminished.
- •Elevated crude oil valuations intensify strain on international bond markets by sustaining inflation risks and complicating the interest rate trajectory.
Key Questions Answered
Asian markets traded lower while bonds declined in alignment with Treasury securities as stubbornly high crude oil prices rekindled inflation fears and reinforced expectations for additional Federal Reserve interest rate increases.
The principal 10-year Treasury yield increased by as much as 11 basis points to reach a new 19-year peak of 5.27%, while the 30-year yield advanced to 5.55%.
US crude oil prices increased by 0.6% to $93.12 per barrel with Brent crude remaining above $106 per barrel, while gold fell nearly 4% to approximately $4,120 per ounce during the preceding session.
