Asian stocks and bonds are set for declines after a jump in oil prices triggered a selloff in US markets, while the latest inflation data bolstered expectations for an imminent Federal Reserve rate hike. Brent crude climbed above $107 a barrel on Thursday, pushing Treasury yields to multiyear highs and lifting the dollar to a one-week peak.
Bonds faced further pressure after the Treasury bought back $5.19 billion of debt, an amount lower than investors had anticipated. A hotter-than-expected producer-price report also prompted traders to increase their bets on a Fed rate hike scheduled for next week.
