- Asia's markets sank as US shares fell for a second day and treasuries dipped as investors began to prepare for higher interest rates as the Federal Reserve battled inflation.
- An Asia stock benchmark was set to decrease for the second week in a row as equities fell in China, Australia, and South Korea. Futures on US equities markets were also down after the S&P 500 and the Nasdaq 100 fell on Thursday. In Japan, the picture was different, with stock increases fueled by favourable earnings from chipmakers.
- Treasury yields rose across the curve after investors drove 2-yr yields above 10-yr yields for the first time since the early 1980s, indicating waning confidence in the economy's ability to withstand future Fed hikes.
- For the US, market pricing Rates to peak in July rose slightly as markets processed new data and the drumbeat of central bankers signalling greater tightening ahead. Fed's Barkin stated that it is critical to keep raising interest rates in order to keep inflation under control. His remarks echoed those of four federal officials who spoke on Wednesday.
