On May 18, global markets experienced significant turbulence as the 30-year U.S. Treasury yield surged past a 20-year high of 5%, sparking widespread selling panic. The 10-year Japanese government bond yield also reached a 30-year high at 2.8%. In South Korea, the KOSPI index plummeted, triggering a circuit breaker, while gold prices fell below $4,500.
The ongoing Middle East standoff, which continues to disrupt oil flows through the Strait of Hormuz, remains a key concern for investors. Priya Misra, a portfolio manager at J.P. Morgan Asset Management, highlighted the dual impact of rising long-term interest rates globally and the increasing likelihood of Federal Reserve rate hikes entering market discussions.
U.S. Treasury Sell-Off Triggers Global Market Turmoil
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