US 10-year Treasury yields hit 4.8% as oil and bond rates weigh on ASX performance
The S&P/ASX 200 fell 1.2% on Wednesday amid surging US oil prices and rising bond yields. Australian local bonds reached their highest 10-year yield since 2011.
On Wednesday, the S&P/ASX 200 declined by 1.2% in Sydney as high energy costs and rising interest rates pressured markets. Crude oil climbed above US$95 per barrel after renewed fighting between the United States and Iran intensified. Bond traders observed significant moves: US 10-year Treasury yields increased to approximately 4.8%, a level not seen since January 2025. Australian 10-year bond yields touched 5.2%, marking their highest point since 2011. These higher rates caused market participants to adjust expectations for future United States interest rate hikes from roughly 40% to about 70% by month's end. The Materials Index on the ASX dropped more than 3% during the trading session, recording a two-week low. Gold prices fell 3%, reaching around US$4,328 per ounce, while copper decreased by 2%. Technology stocks also declined by 3% following morning losses. Uranium sector values retreated after reversing roughly a 10% rally that began in late August.
