War and prospect of rate hikes hoist dollar, gilt wipeout hits Treasuries

On Tuesday, investors' worries about increasing interest rates and an escalation in the Ukraine crisis caused Asian stock markets to decline and the dollar to rise

 at the same time, Treasury yields shot up as a tense fall in British gilts rippled across international bond markets.

In the aftermath of U.S. export restrictions intended to harm Chinese technological growth

MSCI's broadest index of Asia-Pacific shares outside of Japan dropped 1.7% to a two-year low, driven mostly by a worsening decline for chipmakers and China tech firms.

The Nikkei in Japan fell 2%. The Australian and New Zealand dollars fell to levels not seen in two and a half years.

a currency analyst at the National Australia Bank, "risk aversion has taken over," as markets are concerned about additional Russian strikes on Ukrainian cities and a potential global recession.

Instagram
Facebook

Follow us on

wealthbaba.in

Wealth Baba

+91-7977479131

Analysis-Global bonds move in lockstep, ramping up investors' risk