Japan's Nikkei Drops at Open as Asia Markets Drop Following Powell's Jackson Hole Speech

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Japan's Nikkei Drops at Open as Asia Markets Drop Following Powell's Jackson Hole Speech
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Asia-Pacific Markets Set to Drop Following Powell's Speech at Jackson Hole

The yield on the U.S. 2-year Treasury note briefly climbed to 3.45% Monday morning, the highest since Nov. 2007, as Asia-Pacific markets drop after Powell's speech on Friday.

The 10-year yield rose to 3.09% while the 30-year yield also climbed to 3.2%. The yield on the 5-year Treasury note was higher as well at 3.2%.Japanese yen continues to weaken following Powell's speechcontinued to weaken sharply against the greenback following Fed Chair Jerome Powell's hawkish comments on Friday.

Japan's yen has been weakening against the dollar as monetary policy in the two countries diverge, with the U.S. currency boosted by higher rates. "USD/JPY will take its cue from the USD and US Treasury yields in our view," analysts at the Commonwealth Bank of Australia wrote in a note.The negative momentum from Friday appears to have lasted over the weekend, as U.S. stock futures opened lower on Sunday evening.Sign up for CNBC's newsletter here:

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