Prince Says Opposition’s December Movement Threat Echoes Past Events

Bangla Press Desk:  The Asian Financial Crisis of 1997 brought forward currency collapse, capital flight and banking failures throughout the region, causing turmoil in the market and economic recessions.

Asia’s financial market is now showing similar signs at this moment, a situation that had prevailed right before the crisis hit markets two decades back, HSBC’s Chief Economist Frederick Neumann predicted.Surging US bond yields, a weak Japanese yen and tech optimism dominated the financial environment in the lead-up to the crisis, Neumann wrote in a 31 August note, according to CNBC.

What does Neumann think is similar?

Neumann highlighted elevated US Treasury yields as a key similarity with the period before the 1997 crisis. US Benchmark 10-year bonds, for example, climbed from 5% in October 1993 to around 8% in November 1994.

Even in April 1997, yields were at about 7%, some 200 basis points above where they had been four years prior, Neumann noted.

Today, 10-year Treasury bond yields have climbed from a low of 0.5% in August 2020 to around 4.79% early Tuesday.Surging US bond yields, a weak Japanese yen and tech optimism dominated the financial environment in the lead-up to the crisis, Neumann wrote in a 31 August note, according to CNBC.

What does Neumann think is similar?

Neumann highlighted elevated US Treasury yields as a key similarity with the period before the 1997 crisis. US Benchmark 10-year bonds, for example, climbed from 5% in October 1993 to around 8% in November 1994.

Even in April 1997, yields were at about 7%, some 200 basis points above where they had been four years prior, Neumann noted.

Today, 10-year Treasury bond yields have climbed from a low of 0.5% in August 2020 to around 4.79% early Tuesday.