- The financial markets in Asia are beginning to suffer from an escalating selloff in US government bonds, which is increasing borrowing rates, causing currency market intervention, and pushing stocks towards a technical correction.
- The MSCI Asia Stock Index declined for a third day, bringing its loss from a high in July to almost 10%. In Asian trading, Treasuries continued to lose money, and the rates on the 10- and 30-year notes increased closer to 5%. Following Tuesday's S&P 500 decline to a four-month low, US equity contracts declined.
- Japanese five-year government note rates reached a decade high as a result of the selloff in global debt. The yen plunged during US trading hours after falling to levels where some dealers believed intervention support might be required.
- Because US interest rates are so important to global markets, investors are being forced to reevaluate their bets on everything from equities to currencies as they come to believe that Federal Reserve interest rates will remain low for a considerable amount of time. After better-than-expected US job statistics Tuesday bolstered wagers that the US central bank isn't done hiking rates, a new wave of selling erupted throughout markets.
