U.S. 10-year Treasury yields fell for the first time in nine sessions during Asian trade, retreating past the 5% mark to trade near 4.96%. The move followed Federal Reserve Chair Kevin Warsh's delivery of a 25-basis-point rate hike on Wednesday, which lifted the federal funds rate to 3.75%-4%.
The benchmark curve showed relief across the board. Two-year Treasury yields, which had touched their highest level since July 2024, eased for the first time in eight sessions.
Across the Atlantic, U.K. gilt yields remained anchored near one-week lows. The benchmark 10-year gilt hovered around 5.304%, while the rate-sensitive two-year sat at 4.763%. Inflation in the U.K. remains elevated at 3.1%.
Further east, money markets were pricing an 80% probability that the Bank of Japan would raise its policy rate by 25 basis points to 1.25% at its Friday meeting.
Geopolitical risks continued to weigh on the outlook. President Donald Trump voiced optimism that the seven-month Iran war could be nearing an end, stating that Tehran is eager to strike a deal. Trump is expected to meet with key Gulf leaders on the sidelines of the upcoming UN General Assembly. Prior disruptions to Persian Gulf oil supply had kept crude above triple digits and expanded term premia in longer-dated maturities.
Separately, investors noted strong performances from select tech names. Super Micro Computer rose 185% and AppLovin gained 157%, helping a strategy that doubled the S&P 500 over an 18-month stretch.
