Us Treasury Yield Hits 19-year High, Japanese Yen Strengthens: The Numbers Moving Markets

China’s buoyant stock market lifted brokers’ earnings in the first half, while Hong Kong saw continued growth in retirement assets. Beyond China, a strengthening yen and Washington’s Treasury buy-back programme highlighted shifting dynamics in global currency and bond markets.

Here are some of the figures that have drawn the most market attention this week.

Chinese brokerage revenue jumps more than 50 per cent

Chinese brokerages saw revenue from their core business rise by more than 50 per cent in the first half, as buoyant A-share trading lifted commission income.

The broader industry also benefited from the market rally, with 150 brokerages reporting a 23.5 per cent average increase in net profit as operating revenue climbed 31 per cent, according to the Securities Association of China.

Hong Kong’s MPF assets reach HK$1.67 trillion

Hong Kong’s Mandatory Provident Fund has amassed HK$1.67 trillion in assets as of end-June, as policymakers consider widening the investment options available to the city’s compulsory retirement scheme.

The Financial Services Development Council has proposed allowing part of the fund to invest in alternative assets and infrastructure, while calling for Hong Kong to attract more long-term mainland capital to invest globally through the city.

Japanese yen strengthens to seven-month high of 153.63 per US dollar

The Japanese yen strengthened to 153.63 against the US dollar on Wednesday, its strongest level since February, as expectations of tighter monetary policy by the Bank of Japan supported the currency.

Expectations that government efforts could encourage Japanese investors to bring overseas assets home, generating increased demand for the yen, have also fuelled the rally.

US 30-year Treasury yield hits 19-year high at 5.37 per cent

The US 30-year Treasury yield climbed to 5.37 per cent on Thursday, its highest level since 2007, as a global bond sell-off intensified amid mounting concerns over inflation and US government debt.

The surge came even as the US Treasury stepped up efforts to support the market, buying back about US$5.2 billion of 10- to 20-year bonds on Thursday. However, the amount fell short of its US$6 billion maximum announced earlier, while the benchmark 10-year yield rose to around 4.95 per cent after the operation.

ECB raises rates by 25 basis points to tame inflation

The European Central Bank (ECB) raised its three key interest rates by 25 basis points on Thursday, taking its benchmark deposit rate to 2.5 per cent in its second rate increase this year.

The ECB said inflation was expected to remain well above its 2 per cent target for an extended period, as the Middle East conflict continued to push up energy prices. It expected headline inflation to average 3 per cent this year and 2.5 per cent in 2027.