The news sent benchmarket 10-year Treasury yields -- a key guide to interest rates globally -- to fresh four-year highs and ratched up concerns that monetary policy will tighten more than thought. Equity markets were already in negative territory last week owing rising bond yields and profit-taking. Tokyo ended the morning session 2.4 percent lower, while Hong Kong sank 1.9 percent and Sydney shed 1.6 percent. "When longer-term interest rates rise, that tends to stem inflation and economic growth, and that feeds back into corporate profits," he told Bloomberg News. Other analysts warned markets could see a 10 percent correction over the coming weeks as traders readjust their outlooks for interest rates.

Source: The Nation Bangkok February 05, 2018 03:00 UTC