Bond market worries ~ ⛾:Kaffibolla

Treasuries steadied in the Asian trading day following a selloff over concerns that a proposed US tax-cut bill might enlarge the country's deficit. But with the dollar edging down for a fourth session, gold gaining and the yield on the 30-year US sovereign bond staying above the crucial 5% mark, the mood remains wary.

Bond market sentiment, which took a hit after Moody's stripped the US of its top credit grade late last week, deteriorated following a $16 billion Treasury sale that drew surprisingly tepid demand. Traders have been piling into bets that long-term bond yields would surge on concerns over the US's swelling debt and deficits. The market's message has been that unless America gets its finances in order, the perceived risks of lending to the government will rise. Now, Japan seems to be drawing similar warnings after investors shunned an auction of its bonds, and yields soared.

What You Need to Know Today

JPMorgan Chase chief Jamie Dimon won't rule out the US economy falling into stagflation as the country faces huge risks from both geopolitics, deficits and price pressures. "I don't agree that we're in a sweet spot," he told Bloomberg Television. Fed officials have held interest rates steady this year amid a solid economic backdrop and uncertainty about government policy changes — like tariffs — and their potential impact on the economy. Dimon also said the firm is committed to long-term investments in China, despite tensions between the two biggest economies.

Dimon on the sidelines of the JPMorgan China Summit in Shanghai on Thursday. Photographer: Qilai Shen/Bloomberg

Hong Kong's New World Development has secured commitments from about 10 banks for to refinance HK$87.5 billion ($11.2 billion) in loans, according to people familiar with the matter. The cash-strapped builder is racing to complete the deal before the end of next month before the expiry of a covenant waiver. New World has invited over 50 existing bank lenders to join the transaction, they said. While it is eager to complete the refinancing and bolster its liquidity, a transaction with such a large number of participants can take time to process.

Hong Kong authorities are intensifying tax checks of private equity and venture funds as the Asian financial hub faces pressure to plug deficits. Some tax advisers said they have seen a jump of as much as 50% in funds seeking guidance on how to respond to official inquiries. "We've seen a noticeable increase in inquiries from fund clients seeking advice on how to deal with inquiries from the Hong Kong tax authorities in the last two years," said Patrick Yip, vice chair and international tax partner at Deloitte China.

A pedestrian looks out across Victoria Harbour in Hong Kong. Photographer: Paul Yeung/Bloomberg

The value of Bitcoin broke above $111,000 for the first time, with traders increasingly bullish on the prospects of the original cryptocurrency amid mounting institutional demand. A wave of optimism is buoying Bitcoin after the advancement of a key stablecoin bill in the US senate fueled hopes of greater regulatory clarity for digital-asset firms under President Donald Trump, who has embraced crypto.

Someone's in trouble in North Korea. An accident marred the Wednesday launch ceremony for a new destroyer, an event that was overseen by leader Kim Jong Un, according to the state-run news agency KCNA. "Inexperienced command and operational carelessness" resulted in some sections of the warship's keel being destroyed, it said, adding that Kim vowed to deal with those accountable for the "irresponsible errors."

Philippine President Ferdinand Marcos Jr. has told his entire Cabinet to resign, announcing a bid to "recalibrate" his administration after an underwhelming performance by his allies in last week's Senate election. "The people have spoken, and they expect results — not politics, not excuses. We hear them, and we will act," Marcos said in a statement. Investors will want to see if key officials like Finance Secretary Ralph Recto are kept on. Philippine voters earlier this month delivered a blow to Marcos and a boost to his rivals of the Duterte clan, whose performance in midterm elections Monday shows they may have a chance to regain the nation's highest office in 2028.

Ferdinand Marcos Jr. during a campaign rally in Manila on May 9, 2025. Photographer: Veejay Villafranca/Bloomberg

Vietnam says it made positive progress in the second round of trade talks with the US, as it seeks to avert cripplingly high US tariffs. After three days of trade deal negotiations the two sides identified issues on which consensus was close, and areas requiring further discussion, its trade ministry said, adding that talks will continue in June.

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For Your Commute

New York's high-end sushi restaurants and their omakase courses have seen significant price increases in recent years as they competed to create unique and highly sought-after dining experiences. Courses overseen by stars like Keiji Nakazawa at Sushi Sho and Tadashi Yoshida at Yoshino can easily cost $1,000 a person with a drink or two. But now, some chefs and operators are starting to pare things back in scope and cost. Noz 17, the Michelin-starred sister restaurant to Sushi Noz, has introduced a shorter course at its four-seat private counter. At $195, it's hardly cheap, but still far more affordable than its $465 menu.