EQUITIES FALL AS U.S. TREASURY YIELDS, DOLLAR STAY ELEVATED

A global equity index lost more than 1% on Tuesday in a choppy trading session as fears of higher-for-longer interest rates ate into appetites for riskier assets while the benchmark U.S. Treasury yield remained near 16-year highs. The dollar index hit a 10-month high while the Japanese yen came closer to a key level, where Japanese officials are seen as potentially intervening to shore up the currency.

Wall Street's major stock indexes followed Asian and European equities lower as investors continued to digest last week's indication from the Federal Reserve that it would keep rates higher for longer than investors had previously expected. However, Minneapolis Fed President Neel Kashkari said on Tuesday that he sees a "soft landing" for the U.S. economy as likelier than not, but also sees a 40% chance that the Fed will need to raise rates "meaningfully" higher to beat inflation.

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