Asian stocks fell Tuesday as Treasuries and the dollar edged higher, with traders monitoring setbacks in the recovery from the pandemic and braced for U.S. auctions that will test demand for bonds.
Equity indexes slipped into the red across the region, with China’s CSI 300 nearing its year-to-date low. U.S. and European equity futures retreated after an overnight rally on Wall Street that saw the Nasdaq 100 outperform the S&P 500, aided by a drop in long-term borrowing costs.
The 10-year U.S. Treasury yield subsided further from the highest in about 14 months amid hopes of improved demand in this week’s heavy round of sales. The offerings include a seven-year note, a maturity that fared poorly in last month’s auction, sending benchmark yields sharply higher.
Oil prices slid and the dollar rose. New Zealand’s currency erased this year’s gains after the government took steps to rein in surging property prices, cooling speculation about central bank rate hikes.