Bessent Warns on Yuan and Iran Amid Ongoing Tensions
US Treasury Secretary Bessent warned of potential issues related to China's yuan and Iran during his recent G20 comments. The US has concerns that when the yuan cannot be converted to dollars, it can starve Iran of funds. This was one of several points of contention at the G20 meeting.
The global market is still reacting to tensions between the US and Iran, with oil prices remaining above $90 a barrel. Despite this, the US 10-year Treasury yield has risen to its highest level since late 2023, reaching 4.8102%. Japan's 20-year bond yield also hit its highest level since 1996.
Meanwhile, in Asia, Australia and New Zealand are seeing their government bond yields rise. The RBNZ raised interest rates by 25 basis points, as expected, with Governor Breeman noting that the bank may need to take some time to assess its policy stance.