During Friday's Asian session US Treasures accelerated gains as a sell-off in
US tech stocks pushed investors into government debt. Yields across UST tenors
fell at least 3bp, extending New York declines. Australia, Japan and New Zealand
10‑year yields dropped more than 5bp. The move followed disappointing tech
results, including Alphabet, which heightens doubts over the sustainability of
the AI trade and boosted safe‑haven flows. The benchmark 10‑year UST yield is
down nearly 40bp in October and is set for its first monthly decline since
February. NAB's Sydney head of rates strategy said bonds saw renewed inflows
after this week's tech reports. A Nomura senior rates strategist in Sydney said
valuation stress in mega‑cap tech and Alphabet's weak results are diverting some
cash into bonds, and the rally could continue because post‑meeting press
comments were not viewed as particularly hawkish and AI concerns are likely to
persist.
