Treasury yields rise as inflation, heavy supply outweigh U.S. buyback plans
The 10-year Treasury yield inched higher 1 basis point higher to 4.847% on Thursday, while the 30-year yield also climbed by the same to 5.298%, as pressure at the long-end of the yield curve persisted despite the Treasury Department expanding its bond-buyback program.
Treasury Secretary Scott Bessent said Wednesday the department would buy as much as $6 billion of 10- to 20-year Treasurys on Sept. 10.
Elevated yields suggest investors remain focused on more fundamental factors including inflation risks and heavy Treasury supply, according to James Ooi, market strategist at Tiger Brokers.
Oil prices above $100 a barrel have added to inflation concerns, while investors are awaiting U.S. producer and consumer inflation data for further clues on the rates outlook.
“While Treasury buybacks can improve liquidity at the margin, the fact that yields still climbed higher suggests the market sees the long-end pressure as a fundamental rates issue tied to inflation concerns and heavy Treasury supply, rather than merely a liquidity issue,” Ooi said.
—Lee Ying Shan
DBS sued for US$1 billion in claim relating to 1MDB
DBS, Southeast Asia’s largest bank DBS, “categorically rejects and will vigorously resist” a lawsuit against it seeking $1 billion in 1MDB-linked claims.
The lawsuit was filed by claimants including liquidators of four companies: Blackrock Commodities (Global), Platinum Global Luxury Services, Affinity Equity International Partners and TKIL Global Investments.
“The Claim is for damages which the claimants have purportedly estimated at S$1.298 billion,” the bank said in a statement.
“It is a matter of public record that there have been global recovery efforts relating to 1Malaysia Development Berhad, supported by legal counsel since 2018. All this time, there was no claim against DBS,” the bank said.
1Malaysia Development Berhad, a state wealth fund set up by former Malaysian Prime Minister Najib Razak in 2009, was hurt by a massive global corruption and money-laundering scandal, for which global recovery efforts are still ongoing.
Shares of DBS fell 0.58% in early trading on Thursday.
—Justina Lee
Australia leads regional losses as Asia-Pacific markets fall
Asia-Pacific markets opened lower Thursday, with Australian equities leading regional declines.
Australia’s benchmark S&P/ASX 200 was down 1.36%. Index heavyweights Rio Tinto and BHP Group fell 2.93% and 2.52%, respectively.
Japan’s Nikkei 225 dropped 0.62%, and the Topix declined 0.56%.
South Korea’s Kospi lost 0.24%, while the small-cap Kosdaq was 0.83% lower.
— Lee Ying Shan
Asia markets poised to fall after Wall Street extends losses
Asia-Pacific markets were set to fall Thursday, tracking Wall Street declines, as higher oil prices dent sentiment with the Middle East conflict dragging on.
Japan’s Nikkei 225 was set to fall, with its Chicago and Osaka futures contracts last at 64,350 and 64,360 respectively, compared with the index’s previous close of 65,142.78.
Hong Kong’s Hang Seng index futures were at 24,982, lower than the index’s last close of 25,274.96.
Futures for Australia’s S&P/ASX 200 last traded at 8,816, compared with the index’s previous close of 8,911.4.
Brent futures gained 3.4% to $101.21 a barrel Wednesday, the international benchmark’s highest closing price since May 22. U.S. West Texas Intermediate futures advanced 3.3% to settle at $96.05.
— Lee Ying Shan
The rate on a 30-year fixed mortgage hits 6.97%
The cost of financing a home purchase hit its highest level in more than a year — and it’s creeping closer to 7%.
The rate on a 30-year fixed mortgage reached 6.97% on Wednesday, according to Mortgage News Daily. That’s the highest level since May 30, 2025.
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30-year fixed mortgage rate in 2026
The last time the 30-year fixed mortgage was at 7% or higher was on May 26, 2025, when it was 7.02%.
This jump in the 30-year mortgage coincided with a surge in the 10-year Treasury yield, which leapt to 4.857% for its highest level since November 2023. Rates on 30-year mortgages are influenced by the 10-year Treasury note yield.
—Gina Francolla, Darla Mercado
Stocks making the biggest moves after hours: AeroVironment, American Eagle & more
An American Eagle Outfitters store in New York, US, on Monday, May 27, 2024.
Stephanie Keith | Bloomberg | Getty Images
Several companies saw their shares move in extended trading following earnings reports and other developments.
AeroVironment – Shares of the drone manufacturer jumped 2% after first-quarter results trounced estimates. AeroVironment earned 59 cents per share on an adjusted basis and posted revenue of $480 million. Analysts polled by LSEG sought 25 cents a share on $456 million.
American Eagle Outfitters – The teen apparel retailer slid 10%. American Eagle’s comparable sales in the second quarter declined 1%, versus analysts’ call for a decline of 0.6%. The company forecast operating income in the current quarter to range from $110 million to $115 million, versus the StreetAccount consensus estimate of $124.3 million.
Read more about Wednesday’s after-hours movers here.
—Darla Mercado
Stock futures open near flat on Wednesday night