Asian currencies weaken after 10-year Treasury yield tops 5%

  • Asian currencies mostly weakened after the 10-year U.S. Treasury yield exceeded 5%.
  • 5% was reached before the yield settled at 4.960% on Monday.
  • The dollar rose against the yen and won, while the Australian dollar declined.

Asian currencies mostly weakened after the 10-year U.S. Treasury yield rose above 5% on Monday before settling at 4.960%. Commerzbank Research analysts attributed the move to persistent inflation concerns, elevated oil prices, large government borrowing needs and heavy corporate issuance linked to artificial intelligence investment. They said yields remaining above 5% would further tighten financial conditions. The U.S. dollar rose 0.3% to 154.82 yen and 0.45% to 1,353.14 won, while the Australian dollar fell 0.15% to US$0.7126, according to LSEG data.

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