Shorter-dated Asian sovereign bonds fell, tracking moves in Treasuries after the Federal Reserve raised interest rates for the first time since 2023 and signaled further tightening to curb inflation. The dollar gained the most since June.
Government bonds in Australia and New Zealand slipped in early trading after the yield on the rate-sensitive two-year US note rose seven basis points to 4.74%, the highest since 2024. The moves came after Fed Chair Kevin Warsh struck a hawkish tone, saying the rate increase “removed a dose of accommodation.”
