Public Markets 8 Hours

Last updated: May 17, 2026, 11:32 PM ET

Global Bond Markets

Global government bonds extended their selloff as yields in the US, UK and Japan climbed to multi-year highs, with the US long bond yield reaching its highest level since 2023 amid accelerating inflation concerns. The JGB yield curve steepened sharply in Tokyo session trading, reflecting a deepening slump in Japanese debt that added fuel to the global rout, while NTT Finance postponed a yen bond sale amid the surge in yields. Bond markets sent inflation alarm as investors grappled with no clear end in sight to the Iran war, with Yardeni Research urging the Fed to drop its easing bias or risk losing control of borrowing costs as investors grow increasingly worried about inflation.

Asian Currencies & Markets

The yen remained under pressure given Prime Minister Sanae Takaichi's likely reluctance toward monetary tightening, while the Indonesian rupiah fell to a record low with stocks tumbling and bond yields surging as oil prices advanced after local markets reopened. South Korean stocks neared correction territory as rising bond yields put further pressure on the world's best-performing equity market. In contrast, Thailand planned to pare 7,000 business rules to lure foreign investment, aiming to cut bureaucratic hurdles and accelerate investment as it competes for capital in the region. New Zealand's population grew at the fastest pace since 2024 in the first quarter, as signs emerged that the exodus of citizens is slowing.

Energy & Commodities

Iranian attacks and the stoppage of seaborne transit paralyzed Qatar's vital gas exports, stalling the economic pivots intended to anchor the country's growth while overseas buyers increasingly turn to the US for oil and transportation fuels, helping deplete domestic inventories. Plunging crude imports forced Chinese oil processors to sharply reduce output last month, with runs in the state-owned sector dropping to multiyear lows. As Asia heads toward an industrial supercycle, energy, defense and industrial capital expenditures are expected to fuel growth across the region, further straining global energy supplies. Grain futures in Chicago jumped after the US announced that China had agreed to buy at least $17 billion annually in American agricultural produce through 2028, following President Trump's discussions with Chinese officials.

Corporate Developments

Activist investor Elliott Investment Management built a sizable stake in Bio-Rad Laboratories to boost the firm's underperforming stock price, while also taking a position in German lab-equipment supplier Sartorius. Gina Rinehart, Australia's richest person, invested almost $100 million in US weapons-makers and backed two mining companies during the first quarter. Jane Street Group doubled its capacity in Singapore, moving into a new office with 250 seats as it continues to ramp up operations across Asia. Next Era Energy reportedly discussed paying about $76 per share for Dominion Energy in a mostly stock deal that would value the company at around $66 billion, creating the largest power deal on record as demand for electricity surges due to AI data centers. VR Capital built a powerful position in Ukrainian bonds, giving it enormous influence as companies key to the war effort try to restructure their debt.