Daily Asia

Latest edition · September 1, 2026

Daily Asia en 1665869

Renewed conflict in the Middle East and rising oil prices pushed global sovereign bond yields to multi-year highs, with the US 10-year reaching 4.79% and Japan's 10-year touching 3%. Despite ongoing volatility, UBS recommends positioning in short- to intermediate-maturity high-quality bonds as disinflation allows the Fed to remain on hold.

A spike in geopolitical tensions between the US and Iran escalated oil prices to USD 95/bbl, driving global yields to multi-year highs—including 4.79% on the US 10-year and 3% on 10-year Japanese government bonds. UBS forecasts year-end US 10-year and 30-year Treasury yields of 4.5% and 5.0%, respectively. Despite elevated long-end yields, UBS advises investors to favor short- to intermediate-tenor high-quality government and corporate debt, expecting ongoing disinflation and a paused Federal Reserve to guide shorter yields lower. Separately, South Korea's record KRW 821 trillion budget highlights the ongoing expansion of AI infrastructure investment.

Key takeaways from the latest edition

• 1.Maintain preference for short- to intermediate-tenor quality government and corporate bonds as yields are expected to decline in the coming months.
• 2.Global bond yields rose sharply due to Middle East hostilities, Brent crude hitting USD 95/bbl, fiscal concerns, and AI-related debt issuance.
• 3.US Treasury yield forecasts for year-end 2026 are revised to 4.5% for the 10-year and 5.0% for the 30-year.

What this series covers

• Thought of the day
• Caught our attention
• South Korea proposes record budget to accelerate AI investment.
• Market update
• Global asset class preferences definitions
• Appendix

Edition archive

• Daily Asia en 1665869

  September 1, 2026

• Daily Asia en 1665592

  August 26, 2026

• Daily Asia en 1664380

  August 4, 2026

• Daily Asia en 1663170

  July 13, 2026

• Daily Asia en 1662954

  July 7, 2026

• Daily Asia en 1662760

  July 3, 2026