Lates News

During Friday's Asian trading session, the U.S. Treasury rally accelerated as investors turned to U.S. government bonds as a safe haven amid a selloff in U.S. tech stocks. Yields on Treasuries across maturities fell at least 3 basis points, extending the decline from the New York session. Australian, Japanese and New Zealand bonds followed suit, with their benchmark 10-year yields each falling more than 5 basis points. Risk aversion intensified after disappointing earnings from tech giants including Alphabet, further deepening doubts about the sustainability of the AI trade. In October, the benchmark 10-year U.S. Treasury yield has fallen nearly 40 basis points, on track for its first monthly decline since February. Kenneth Crompton, head of rate strategy at National Australia Bank in Sydney, said bonds are rallying this morning, with risk aversion once again driving inflows after this week's tech company earnings. Andrew Ticehurst, senior rates strategist at Nomura Holdings in Sydney, said persistent market nervousness over the valuations of hyperscale tech companies, combined with Alphabet's disappointing earnings, is channeling some safe-haven flows into the bond market. The rally may continue, as Warsh's remarks at the post-meeting press conference are not seen as particularly hawkish, and these AI-related concerns appear likely to persist.