Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
Warren Buffett’s Berkshire Hathaway Inc raised ¥281.8 billion (US$1.89 billion) in a multi-tranche bond sale on Thursday, fuelling speculation that the legendary investor is set to increase his exposure to Japanese assets. This marks Berkshire’s largest yen-denominated bond deal since 2019.
The firm priced a seven-part bond with tenors ranging from three to 30 years, with most maturities offering higher premiums compared to its yen-note sale in April. Notably, Buffett has previously used funds raised from yen bonds to purchase stakes in major Japanese companies, which contributed to the Nikkei 225 reaching record highs earlier this year.
Analysts speculate that Berkshire’s investments could extend beyond trading houses to include banks, insurers, and shippers, potentially driving further gains in the Japanese stock market.
The bond sale was closely watched as a test of investor demand for yen-denominated bonds amid a changing interest rate environment following the Bank of Japan’s policy shift. The wider premiums on longer-tenor debt reflected caution among investors about future rate hikes.
For example, the 10-year bond offered a spread of 82 basis points over mid swaps, higher than April’s 71 basis points, while the 20-year note carried 91 basis points compared to 78 in April.
The BOJ is expected to maintain its current policy stance at its next meeting on Oct 31, with new Prime Minister Shigeru Ishiba signaling that the conditions are not yet suitable for a rate hike this year.
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