Hong Kong, 13 October 2026 – US Treasury bonds are attracting renewed interest from Hong Kong investors after a prolonged sell-off pushed yields to levels not seen for more than two decades. The benchmark 10-year yield moved above 5.36% before easing to around 5.23%, offering unusually high income but also exposing buyers to further capital losses if inflation and government borrowing keep yields elevated.
The retreat followed strong demand at a US$22 billion auction of 30-year government bonds. That response suggested that long-term investors were willing to add exposure at current prices, but one successful auction does not establish a durable turning point. Bond yields move inversely to prices, so investors who buy before yields peak can still suffer mark-to-market losses even while collecting higher coupons.
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