Asian bond markets are expected to fall in tandem with US Treasuries, as the 10-year US Treasury yield rises to 5.27%.

The Asian bond market is expected to decline following US Treasuries, as the standoff between the US and Iran keeps oil prices elevated, intensifies inflation concerns, and increases market bets on further rate hikes by the Federal Reserve. New Zealand government bonds opened lower, and Australian government bond futures indicate a possible drop, following a broad-based surge in US Treasury yields across all maturities. The benchmark 10-year US Treasury yield at one point rose by 11 basis points to 5.27%, reaching a 19-year high; the 30-year yield climbed to 5.55%. Short-term bond yields also increased, with traders anticipating that the Federal Reserve will continue tightening policy to curb inflation. Morgan Stanley analyst Chris Larkin stated: “Due to rising yields and oil prices, the overall market has struggled to gain significant momentum. As the Federal Reserve continues to focus on inflation within its policy objectives, unless there is a major surprise in this week's employment data, the market's attention may remain on interest rates and energy prices.”