Global Markets:
- Asian Stock Markets : Nikkei down 1.52%, Shanghai Composite down 0.45% Hang Seng down 0.54% ASX down 1.26%
- Commodities : Gold at $4,462.15 (-0.52%) Silver at $73.890 (-0.15%), Brent Oil at $110.71 (-0.24%), WTI Oil at $103.76 (-0.22%)
- Rates : US 10-year yield at 4.670, UK 10-year yield at 5.1320, Germany 10-year yield at 3.1885
News & Data:
- (CAD) CPI m/m 0.4% to 0.7% expected
Markets Update:
Asia-Pacific markets declined Wednesday as investors assessed rising bond yields and renewed geopolitical tensions after U.S. President Donald Trump said he was “an hour away” from approving a strike on Iran before delaying the decision for several days.
U.S. Treasury yields climbed as investors sold bonds amid fears that inflation pressures could return. The 30-year Treasury yield briefly touched 5.197%, its highest level since July 2007, before easing slightly to 5.174%.
In Japan, super-long government bond yields cooled after recent record highs, with the 30-year JGB yield falling more than 3 basis points to 4.122%. However, shorter-term debt remained under pressure, with the 5-year JGB yield reaching a record 2.041%.
State Street strategist Masahiko Loo said rising Japanese bond yields are contributing to a broader global “duration reset,” but are unlikely to create systemic financial stress. He noted that Japan’s debt market remains largely domestically funded and supported by strong household savings.
Regional equities weakened broadly. Japan’s Nikkei 225 dropped 1.29% and the Topix fell 1.45%. South Korea’s Kospi lost 0.69%, while the Kosdaq slid 2.23%. Australia’s S&P/ASX 200 declined 0.85%. Hong Kong’s Hang Seng fell 0.55%, and mainland China’s CSI 300 slipped 0.3%.
U.S. stock futures edged higher after Wall Street closed lower overnight.
Upcoming Events:
- 12:30 PM GMT – CAD CPI m/m
The post Wednesday 20th May 2026: Rising Bond Yields and Iran Tensions Drag Asia-Pacific Markets Lower first appeared on IC Your Trading Edge | Official Blog.