US Treasury Secretary Scott Bessent's attempt to calm market jitters fell flat as investors remained unsettled by fresh selling in long-term government bonds. The yield on 30-year Treasury bonds rose 0.06 percentage points to 5.24% in New York trading, reversing most of the previous day's decline following the Treasury's announcement to at least double its bond purchases from $2bn to $4bn.

Bessent argued on CNBC that markets had "gotten a little ahead of themselves" and hinted at upcoming measures to reduce the budget deficit. However, Wall Street analysts expressed skepticism, noting the buyback plan may be insufficient to address broader investor concerns.

Meanwhile, hedge funds endured their worst day in two years, driven by the Treasury buyback developments and a surge in Moderna shares. Investors also scaled back expectations for Federal Reserve and Bank of England rate hikes.

Other key stories include the sentencing of Evergrande founder Hui Ka Yan to life in prison, Taiwan's proposed record defense budget increase, and ongoing Russian missile attacks on Kyiv.