Invesco, UBS Asset shun Asia sovereign bonds

Taipei

INVESCO Ltd and UBS Asset Management aren't adding to their holdings of Asian local-currency sovereign bonds for the time being as they see yields in most markets rising in tandem with US Treasuries.

Five-year US yields climbed to a six-month high overnight after the Federal Reserve raised benchmark rates for the first time in almost a decade and projected four more increases in 2016.

The reaction in Asian markets, which was fairly muted on Thursday, is likely to…