MSCI Asia Pacific Index Falls as 10-Year Treasury Yield Jumps 20 Basis Points
Updated
Updated · Bloomberg · May 19
MSCI Asia Pacific Index Falls as 10-Year Treasury Yield Jumps 20 Basis Points
3 articles · Updated · Bloomberg · May 19
The MSCI Asia Pacific Index fell last week, extending a pattern in which rising US yields pressure Asian equities despite enthusiasm around AI-linked stocks.
Bloomberg-compiled data show the index has dropped in 16 of the 19 weeks over the past five years when the US 10-year Treasury yield climbed 20 basis points or more.
Those yield spikes have produced an average 1.6% weekly decline in the regional benchmark, underscoring how inflation fears can outweigh the AI-driven rally.
The latest move highlights a broader risk for Asia markets: higher US borrowing costs are tightening financial conditions just as investors have been leaning on AI optimism.
Is the AI boom strong enough to defy rising interest rates and rescue Asia's stock markets?
With US debt and global conflicts rising, are Treasuries no longer the world's safest investment?
As central banks lose faith in US bonds, where are they shifting billions in reserves?