Asian currencies weaken as 10-year Treasury yield hits 5.113%, highest since 2007

Asian currencies broadly weakened against the dollar at 0140 GMT after U.S. Treasury yields rose sharply overnight. The 10-year Treasury yield reached 5.113% on Wednesday, its highest level since 2007. MUFG Bank’s Lloyd Chan said stronger U.S. growth, rising inflation risks and stronger oil prices had created a toxic combination for bonds, pushing yields sharply higher across the curve. The dollar rose 0.25% to 4.0870 Malaysian ringgit and 0.1% to 31.825 New Taiwan dollars, while the Australian dollar fell 0.1% to US$0.7032, according to LSEG data.