Global shares slide as Treasury yields hover near multiyear highs

World shares declined and U.S. futures slipped on Monday as persistent pressure in the bond market weighed on investor sentiment, setting the stage for a pivotal week that includes the Jackson Hole Economic Symposium and a key inflation report.

Bond Yields Near Multi-Year Highs

The 10-year Treasury yield stood at 4.71% early Monday after rising to 4.73% on Friday, matching its highest point in more than a year. The 30-year Treasury yield climbed near its highest level since 2007. The moves came after Treasury Secretary Scott Bessent's announcement last week that the government would double its buybacks of longer-term bonds provided only temporary relief to the market.apnews+3

Rising yields forced the U.S. Treasury Department into an unusual intervention last week, raising concerns that investors are balking at financing what the Associated Press described as "a seemingly endless flow of government borrowing". Higher yields threaten to slow the economy by raising borrowing costs for consumers and businesses.apnews

Asian Markets Lead Declines

In Asia, Japan's Nikkei 225 fell 0.7% to 65,528.09, while South Korea's Kospi dropped 3.1% to 6,696.96. The Hang Seng in Hong Kong declined 1.9% and the Shanghai Composite gave up 0.6%. Australia's S&P/ASX 200 bucked the regional trend, gaining 0.5%.finance.yahoo+1

In Europe, Germany's DAX edged lower, while Britain's FTSE 100 inched up 0.1%. The S&P 500 futures fell 0.2% and Dow Jones Industrial Average futures dropped 0.1%. U.S. technology stocks were under particular pressure, with Micron Technology ↗ 2.77% slipping 3% and Coherent ↘ 0.49% falling more than 5% in early trading.clickorlando+1

A Week of Key Data and Signals

Investors are looking ahead to Wednesday's personal consumption expenditures report for July, the Federal Reserve's preferred inflation measure, which is expected to show U.S. consumer inflation remains above 3%. The Commerce Department will also issue its second estimate of second-quarter GDP growth, after an initial reading showed the economy expanded at a sluggish 1.5% pace.whio+1

Federal Reserve Gov. Kevin Warsh is scheduled to deliver a speech at Jackson Hole later this week that markets will parse for signals on rates and policy. Meanwhile, oil prices declined as Iran's rial hit a record low of 2.02 million to the dollar on informal markets, with the U.S. preparing to announce new sanctions aimed at breaking the impasse over the ongoing conflict.bnnbloomberg+2