Asian Stocks Slide Amid Bond Stress as Bitcoin and Gold Shine

Asian stock markets are experiencing losses as bond market stress persists.

The region's shares have been hit by rising US Treasury yields, which resumed climbing this week after a brief pause. The 30-year yield rose to 5.25%, and the 10-year yield hit 4.71%.

Secretary Scott Bessent suggested that the government could expand bond repurchases and float fiscal consolidation. However, analysts doubt Washington can find enough spending cuts to narrow the deficit, which is running above 6% of GDP.

The deficit's interest payments alone are set to top $1.2 trillion this year. Deutsche Bank strategist Steven Zeng noted that 'historically, markets have pushed back when they believe fundamentals... are on their side, and further interventions could become too costly to bear.'

In contrast, Bitcoin (BTC) and gold have rallied as safe-havens, with BTC trading near $74,300 after touching an intraday high of $75,500. Gold held near $4,513 an ounce, up 3.1% for the week.