Treasuries fell as a Federal Reserve official emphasized that recent US economic data might delay the number of interest-rate cuts seen this year. Japanese stocks dragged down broader Asian equities.
Yields on Treasuries advanced across tenors in early trading in Asia following Fed Governor Christopher Waller’s remarks after the Wednesday close that there is no rush to lower interest rates, and he wants to see “at least a couple months of better inflation data” before cutting. Two-year Treasury yields, which are more sensitive to policy moves, rose three basis points while the dollar strengthened against all of its Group-of-10 peers.
Shares in Japan slipped as they traded ex-dividend. The move also came after the Nikkei 225 index Wednesday advanced to near its record high. Meanwhile, Australian stocks climbed to a fresh record, while futures for benchmarks in Hong Kong pointed to gains.
Contracts for US equities were little changed in Asian trading after the S&P 500 closed at a record, with many institutional investors potentially rebalancing their portfolios.
In Asia, the yen will remain in focus. The currency steadied in early trading after pulling back from the lowest level since 1990. The yen had weakened to 151.97, beyond the level at which policymakers stepped in during October 2022.
“Market perception is they have drawn a line in the sand at 152,” said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi Asset Management US. “The key question is their commitment.”
In commodities, oil climbed to head for a solid quarterly gain on expectations OPEC+ supply cuts would tighten the global market. Gold steadied Thursday after three sessions of gains.
First Published: Mar 28, 2024 6:43 AM IST
