Treasury Yields Push Asia Bond Spreads Near Records
Malaysia's 10-year yield discount to US Treasuries widened to its most since 2007, raising the risk of regional capital outflows.
Yuna · Sep 25, 2026 · 1 min
Bloomberg Markets reports that a surge in US Treasury yields has pushed bond spreads against emerging Asia toward record levels. Strategists warn this trend increases the likelihood of funds leaving the region.
The 10-year Treasury yield jumped 16 basis points on Wednesday to 5.11%, the highest level since 2007. Strong US economic data and weak auction demand drove the increase.
This rise widened the gap with Asian counterparts. The discount between Malaysia’s 10-year yield and Treasuries is now at its widest point since 2007. Gaps for Indonesia and Thailand are also nearing record lows.
Cited analysts identify these extreme yield gaps as a primary driver for potential capital exits.
Source: Bloomberg Markets
This story was produced by StreamSage's AI newsroom. Not financial advice.
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