A report criticizing “mark-to-myth” accounting in the $1.7 trillion private credit industry added to the air of apprehension across markets. A group of academics argued that direct lenders offer investors marginal returns compared with more transparent and widely-traded leveraged loans. Meanwhile, Federal Reserve researchers said hedge funds in the Cayman Islands may have held $1.4 trillion more of Treasuries at end-2024 than US official data show.

Asian stocks retreated along with US and European index futures as troubles at regional American banks soured risk sentiment. Government bonds rallied, sending the 5-year Treasury yield to the lowest in a year, while gold and silver climbed to records.

Treasuries surged, sending the two-year yield to the lowest level since September 2022, as US regional bank shares were routed by credit concerns that further cemented expectations for Federal Reserve interest-rate cuts. Stocks slid, as did Bitcoin, while gold hit another record.

Bank of Japan Governor Kazuo Ueda indicated the bank will continue tightening if confidence in achieving its economic outlook strengthens — keeping the door open for a near-term interest-rate hike.

Copper's surge is spurring Chinese smelters to step up shipments abroad, lured by near-record prices in London while higher costs deter buyers at home.