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Bond interest doesn’t stop and exchanges fall to the red – Markets in a minute

US Treasury interest does not stop and stock exchanges are “run over”

Asian stock markets have fallen, and US and European futures follow the same trend, at a time when interest rates on US sovereign bonds continue to rise and fuel fears that prices will be overvalued.

The MSCI Asia index recorded the biggest drop this week with the Chinese and Hong Kong stock markets leading losses. The technology sector is suffering, giving way to others like real estate, finance or energy, after the American Nasdaq sank in the last session for a minimum of two months. The Shanghai Composite slid 1.9%, the Hong Kong stock fell 2.2%, the South Korean Kospi yielded 1.1% and the Japanese Topix fell 1%. Both North American and European futures fall above 0.5%.

Rising expectations for inflation and long-term financing costs are dashing hopes that the prolonged rally in the markets will have legs to move.

“Inflation is a concern; there is a lot of money flooding the system and it makes sense to have some sort of correction now,” say analysts at the Spotlight Asset Group, speaking to Bloomberg. “Bond interest rates are an implicit way for markets to tighten afterwards and the Fed has been clear on how it does not intend to do so.”

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