Asian bond markets are expected to track US Treasures lower after a US-Iran
standoff pushed oil prices higher, raising inflation concerns and boosting bets
on further Fed hikes. New Zealand government bonds opened weaker and Australian
bond futures signaled declines after yields across the US curve surged: the
10-year Treasury jumped about 11bp to 5.27% — a 19-year high — and the 30-year
rose to 5.55%. Short-dated yields also advanced as traders priced continued Fed
tightening to curb inflation. Morgan Stanley analyst Chris Larkin said rising
yields and oil have sapped market momentum and, barring a major surprise in this
week’s US jobs data, focus is likely to remain on rates and energy prices.
