Published: 10:23, September 24, 2026
Bonds shaky, oil eases off highs amid peace talks
By Agencies

TOKYO - Debt markets were on edge on Thursday, as Japanese bonds followed Treasuries lower, while ​Asian equities were mixed as investors weighed simmering Middle East tensions.

As Tokyo markets reopened after a three-day holiday, the benchmark 10-year Japanese government bond yield jumped to a 30-year high after a steep sell-off in the US market overnight. Oil prices eased from recent highs and the greenback held gain.

Market ​participants looked ahead to a series of central bank speeches and economic releases, including US jobless claims, for signals on future interest ​rate hikes.

"Equities are really showing some signs of creaking under the weight of ever-rising bond yields," Ray Attrill, head of FX strategy at the ​National Australia Bank, said on a podcast. "And in that sort of risk-off environment, it still seems to be the case that the US dollar does ​find safe-haven support."

The MSCI Asia ex-Japan index fell 0.64 percent, while Japan’s Nikkei 225 rose 1.73 percent. Australian shares hit a more than three-month low, with the benchmark S&P/ASX 200 index falling 1.2 percent.

Bond yields ​have climbed to multi-year highs as traders price in the likelihood of central bank hikes to contend with persistent inflation.

Japan's 10-year government bond yield climbed 8 basis points (bps) ‌to 3.06 percent, a level not seen since August 1996, and the 30-year yield rose 5.5 bps to 4.12 percent. The US 10-year Treasury yield held steady at 5.11 percent, after reaching the highest since 2007 overnight.

Central bank officials maintained a hawkish tone as rising oil prices drove inflationary pressures. Federal Reserve Governor Michael Barr said on Wednesday the central bank's recent rate hike was part of efforts to recalibrate borrowing costs and signaled more increases may be needed. Markets are anticipating ​speeches from other Fed officials on ​Thursday, including New York Fed President John Williams and Fed President Beth Hammack.

Brent crude fell 1 percent to $102.05 a barrel, while US West Texas ​Intermediate slipped 0.74 percent to $91.48 a barrel. Spot gold gained 0.35 percent to $4,301.89 an ounce.

The dollar index fell 0.04 percent to 101.09, while the euro slipped 0.02 percent to $1.14. The Japanese yen strengthened 0.24 percent to 157.91 per dollar.

On the economic front, the US Labor Department is expected to report that initial jobless claims likely rose to 201,000 in the week ended Sept ​19, while continuing claims likely increased 15,000 to 1.745 million in the prior week. New ​home sales are forecast to edge up to 615,000 units in August from 607,000 units in July.

European futures were lower. Euro Stoxx 50 futures fell 0.33 percent to 6,304.00, DAX futures slipped ​0.33 percent to 25,525.00, FTSE futures dropped 0.35 percent to 10,739.50.

Bitcoin edged up 0.07 percent to $84,288.53, while Ether climbed 0.46 percent to $2,683.24.