US Treasury yields fell across the board in the Asian session as safe-haven buying increased

During Friday's Asian trading session, U.S. Treasuries accelerated their gains as American technology stocks were sold off and investors turned to U.S. government bonds for safety. Yields on Treasuries of various maturities fell by at least 3 basis points, continuing the decline seen during the New York session. Bonds in Australia, Japan, and New Zealand also rose, with yields on their respective benchmark 10-year government bonds down more than 5 basis points. Risk-off sentiment intensified after disappointing earnings reports from tech giants such as Alphabet, further increasing doubts about the sustainability of AI-driven trading. In October, the yield on the benchmark 10-year U.S. Treasury declined by nearly 40 basis points and is set to record its first monthly decrease since February. Kenneth Crompton, Head of Rates Strategy at National Australia Bank in Sydney, said that bonds rallied this morning, with risk aversion driving flows after this week's tech company earnings reports. Andrew Ticehurst, Senior Rates Strategist at Nomura Holdings in Sydney, stated that continued tension over the valuations of mega-cap tech companies, coupled with Alphabet's disappointing earnings, is pushing some safe-haven funds into the bond market. This rally could persist, as the statements made by Waller at the post-meeting press conference were not particularly hawkish, and concerns related to AI appear likely to continue.