[AsiaTimes] With Asia's central banks holding massive stashes of US Treasuries, a yield rise could be devastating – and could trigger a regional panic sell.
Jamie Dimon just said what’s on the minds of many Asian central bankers. More to the point, he previewed the worst thing that could befall their balance sheets this year: 5% US bond yields.
The JPMorgan Chase CEO’s prediction is worrisome because, odds are, he’s right. As Dimon said over the weekend in Aspen, Colorado: “I think rates should be 4% today. You better be prepared to deal with rates 5% or higher – it’s a higher probability than most people think.”
Actually, Asia has been thinking about it. Lots.
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