Asian bonds tracked a selloff in U.S. and European debt, and the euro fluctuated amid wrangling over whether Greece will qualify for further aid. Asian stocks slipped and emerging-market currencies dropped.
Yields on 10-year government notes in Japan and Australia climbed at least five basis points by 12:28 p.m. in Tokyo, while benchmark Treasury rates held near their highest this year. The MSCI Asia Pacific Index lost 0.5 percent as Chinese shares in Hong Kong fell. Standard & Poor’s 500 Index futures were little changed. The euro was little changed and a gauge of Asian developing-nation currencies fell to a four-week low.
Overblown expectations for the European Central Bank’s quantitative easing plan pushed global debt valuations to extreme levels, triggering a “large and vicious” selloff in European bonds that’s infected other markets, according to Goldman Sachs Group Inc. Greece has readied a repayment to the International Monetary Fund, officials said, as the ECB prepared to reassess emergency funding for the country’s banks.