Asian stocks edged higher on Friday as investors assessed the US Treasury's move to push down long-term bond yields, while analysts warned that alone would not be enough to keep borrowing costs from spiking.Treasury Secretary Scott Bessent's pledge that he had more tools to provide support did little to comfort US markets as skeptical Wall Street investors resumed their selling amid concerns over elevated inflation and government borrowing, among other things.
The lack of progress on reopening the Strait of Hormuz added to unease on trading floors, with oil prices gradually rising over the past two weeks as the United States and Iran remain deadlocked.
The US Treasury provided a much-needed boost to markets on Wednesday when it said it planned to "at least double" its sovereign bond buybacks, a day after the 30-year yield surged to levels last seen in 2007 just before the global financial crisis.
That sent long-term rates plunging but they rebounded on Thursday, with Mark Malek, of Muriel Siebert & Co, calling it "a housekeeping move destined to be short-term, at best".
Bessent told CNBC on Thursday that his department had a "big toolkit" to address a rise in yields that it views as unmoored to financial conditions. Such measures could include increased bond purchases beyond the scale announced the day before.
