Kowloon Property Sale and MPF Gains Influence Market Amid US Yield Surges
The South China Morning Post reports that a Kowloon residential site sale and gains in Hong Kong's MPF influenced the market narrative this week, while China saw 2.14 billion passenger trips during the National Day holiday. The US 10-year Treasury yield reached a 24-year high of 5.36 per cent, and the 30-year yield also hit a 24-year high of 5.7 per cent.
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According to the South China Morning Post, the market narrative for the week was shaped by a residential site sale in Kowloon and gains made by Hong Kong's MPF. The property market in Hong Kong demonstrated renewed vigor as a residential site in Kowloon achieved its highest price in almost five years, and the city's pension funds recorded solid increases despite a downturn in September. Furthermore, global investors began returning to Chinese equities after a period of caution, coinciding with surges in US Treasury yields to multi-decade highs.
Several figures garnered significant market attention this week. China documented 2.14 billion passenger journeys during the National Day holiday. Regarding the holiday box office, data from the National Film Administration, as reported by CCTV, indicated a 36.5 per cent decrease to 1.165 billion yuan compared to the previous year, noting that this year's holiday period was one day shorter than the prior year's.
On the US financial front, the benchmark US 10-year Treasury yield ascended to 5.36 per cent on Wednesday, marking its highest level in 24 years. This rise was attributed to ongoing inflation concerns and increasing oil prices, which prompted another sell-off in government bonds. Additionally, the 30-year yield also attained a 24-year high of 5.7 per cent. However, selling pressure appeared to lessen following a substantial US$39 billion auction of 10-year notes, suggesting that elevated yields were drawing investors back into the market.
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