Yields Surge Amid Firm Oil Prices, Rekindling Fiscal Concerns

Global yields surged on Tuesday as oil prices remained firm, reigniting concerns about fiscal policy. US Treasury Secretary Bessent told Japanese officials that rate hikes are needed to stabilize markets, according to NHK.

A Japanese Ministry of Finance official said the Bank of Japan will focus on domestic economic conditions rather than being influenced by US monetary policy decisions.

The Nikkei 225 index traded indecisively, while USD/JPY remained rangebound. Crude futures continued their upward trend after gaining value yesterday, adding to pressure on long-end yields.

Asian stocks opened with a mild negative bias due to the higher prices and yields, but losses were partly offset by better-than-expected data in some regions.