Asian shares near six week low as US bond yields creep up near 4-yr high

With prospects of rising interest rates around the world, triggering a massive sell out of equities, investors fret that low borrowing cost might be endangered by inflation

Asian shares flirted with six-week lows on Thursday as US bond yields crept up toward four-year highs as investors fretted that low borrowing costs enjoyed by companies for many years may be endangered by the threat of rising inflation.

US congressional leaders reached a two-year budget deal to raise government spending by almost $300 billion, a rare display of bipartisanship that is positive for risk sentiment but is also widening the federal deficit sharply.

“The scale of the increase was much larger than what markets were expecting just a few months ago. It will have as big impacts as tax