US Bond Yields at 24-Year High; Paul Chan Sees No Impact on Global Asset Allocation
On.cc · 3 SOURCESabout 3 hours ago3 MIN
Summary
Financial Secretary Paul Chan Mo-po stated on Sunday that despite the US 10-year Treasury yield reaching its highest level in 24 years, short-term market volatility will not derail the broader trend of international asset allocation and supply chain restructuring. Hong Kong's financial markets remain robust, with average daily stock turnover rising 6.4% year-on-year to HK$272.9 billion in the first nine months, while 116 companies listed in the city, raising over HK$388 billion through IPOs. Meanwhile, mainland visitor arrivals during the National Day Golden Week surged 8.4% year-on-year to over 732,000 in the first three days.
Key Points
- The US 10-year Treasury yield peaked at 5.04% on September 15, the highest level since 2007 and a 24-year high, driven by strong economic data, tech sector financing demand, and geopolitical risks affecting energy costs .
- Hong Kong's stock market averaged HK$272.9 billion in daily turnover during January–September, representing a 6.4% year-on-year increase, with 116 new listings raising over HK$388 billion—more than double the same period last year .
- Mainland visitor arrivals during the first three days of National Day Golden Week exceeded 732,000, marking an 8.4% year-on-year increase, with restaurants and shops reporting improved business .
- Paul Chan attended the Asian Infrastructure Investment Bank annual meeting in Doha, Qatar, observing that cooperation between Hong Kong, the Middle East, and the Global South is deepening across finance, technology, and institutional development .
- The Federal Reserve raised the federal funds rate by 0.25 percentage points to a 3.75–4% range, its first rate hike since 2023, with 16 of 18 committee members projecting additional increases this year .
- Asia-Pacific economies have outperformed developed markets in 2026, with South Korea's KOSPI rising over 73%, Taiwan's weighted index climbing 63%, and Japan's Nikkei 225 gaining 28%, supported by AI and semiconductor demand .
Why It Matters
The surge in US bond yields to a 24-year high creates ripple effects across global markets, increasing borrowing costs for governments and corporations while pressuring high-valuation growth stocks. However, Chan Paul Paul's reassurances underscore Hong Kong's resilience as an international financial centre, with strong IPO activity and tourism recovery demonstrating that fundamental economic drivers remain intact despite external headwinds . Hong Kong's upcoming hosting of the APEC Finance Ministers' Meeting and Global Financial Leaders Investment Summit positions the city to further strengthen its role as a bridge between Mainland China and global markets, even as interest rate uncertainty persists .
The surge in US bond yields to a 24-year high creates ripple effects across global markets, increasing borrowing costs for governments and corporations while pressuring high-valuation growth stocks. However, Chan Paul Paul's reassurances underscore Hong Kong's resilience as an international financial centre, with strong IPO activity and tourism recovery demonstrating that fundamental economic drivers remain intact despite external headwinds . Hong Kong's upcoming hosting of the APEC Finance Ministers' Meeting and Global Financial Leaders Investment Summit positions the city to further strengthen its role as a bridge between Mainland China and global markets, even as interest rate uncertainty persists .