Investors “should be on alert” as US financial risks mount, says market expert
The Australian share market closed the week lower. The ASX 200 lost 0.6% to 9,059.
The overarching theme driving global market moves has been the surging US 30-year bond yield, which hit a 19 year high on Wednesday, and the US Treasury’s attempts to suppress them with a so called bond buyback. Analysts say upward pressure on yields reflects nervousness around US inflation.
Moomoo Australia and New Zealand chief executive, Michael McCarthy says “one of the frightening parts of this, is the US government via the US Treasury might be able to hold yields down for a while, but eventually it will give up and it will be like a dam bursting in the bond market.” He says that would mean “it’s financial crisis time all over again because the US debt issuance sits at the heart of the bond market globally and if the benchmark blows up every market blows up with it. ”
Michael McCarthy says market is very uncertain and risky at the moment, “investors should already be on alert, but the developments this week make it much more likely that the next financial crisis, whenever it arrives will start in the US.”
Bitcoin jumped above $US75,000 after Donald Trump called on US politicians to pass legislation called the Clarity Act, which aims to offer more clarity about which crypto assets are securities or tokens and which regulators police them.
Spot gold prices rose above $US4,500 an ounce.
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Read more here: https://www.abc.net.au/news/2026-08-21/asx-markets-business-live-news-august-21-2026/107061908
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