Morning Bid: Inflation relief gives bonds little reprieve
Cooling US inflation has failed to provide relief for global bond markets, leaving yields elevated and US Treasuries under severe pressure as the final quarter of the year begins. Asian shares traded mixed with regional benchmarks mostly rising, supported by market optimism around artificial intelligence and strong chip earnings despite lingering worries over conflicts involving Iran. Emerging Asian currencies opened October lower while bond yields hovered near multi-year highs, tempering the impact of softer inflation prints on investor sentiment globally.
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- ✓ Asian stocks traded mixed and bond yields remained elevated as US inflation slowed.
- ✓ Emerging Asian currencies started October lower due to rising long-term US Treasury yields.
- ✓ Tech stocks received a boost from Micron and chip earnings forecasts.
What changed
Asian stock markets traded mixed on Thursday as investors balanced artificial intelligence optimism against mounting pressure from high US Treasury yields.
Live updates
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Inflation Relief Fails to Lift Global Bond Markets
Cooling US inflation has failed to provide relief for global bond markets, leaving yields elevated and US Treasuries under severe pressure as the final quarter of the year begins. Asian shares traded mixed with regional benchmarks mostly rising, supported by market optimism around artificial intelligence and strong chip earnings despite lingering worries over conflicts involving Iran. Emerging Asian currencies opened October lower while bond yields hovered near multi-year highs, tempering the impact of softer inflation prints on investor sentiment globally.
Why it matters
Global financial markets face conflicting pressures as declining inflation figures ease expectations for aggressive monetary policy tightening. However, persistent selling in long-term US Treasury bonds continues to weigh heavily on sovereign debt values and regional currencies. Investors are closely monitoring upcoming US and euro zone economic data alongside central bank policy outlooks.
What is confirmed
- Asian stocks traded mixed and bond yields remained elevated as US inflation slowed.
- Emerging Asian currencies started October lower due to rising long-term US Treasury yields.
- Tech stocks received a boost from Micron and chip earnings forecasts.
Still unconfirmed
- Global bond markets may stabilize if upcoming euro zone and US data point to further cooling inflation.
What to watch next
- Upcoming US and euro zone economic data releases
- Bank of Japan policy outlook announcements
- Further developments in AI chip earnings and semiconductor forecasts
confidence 90%Sources used for this update (16)
- www.zerohedge.com — Futures Rise As Oil Drops, Dragging Rates Lower | ZeroHedge
- Investing.com — Asia stocks mixed ahead of U.S. PCE inflation; regional data in focus
- www.globalbankingandfinance.com — Asian Stocks Dip, Bonds in Focus as Inflation Cools Rate Hike ...
- Reuters — Morning Bid: Inflation relief gives bonds little reprieve
- Yahoo Finance — Asian shares mostly rise amid market optimism about AI, despite Iran worries
- lancasteronline.com — Global shares are trading mixed as market optimism about AI gets tempered by Iran worries
- Investing.com — Tech stocks boosted by Micron but Treasury rout hangs over markets By Reuters
- Seeking Alpha — Asian markets trade mixed amid rebound in oil prices; Australian trade and PMI slump
- Voice of Alexandria — AP Business SummaryBrief at 12:01 a.m. EDT
- NEWS10 ABC — Asian benchmarks mostly rise despite ongoing worries about the Iran war
- www.marketscreener.com — Nikkei logs six-week closing high as Micron forecast lifts chip stocks | MarketScreener
- finance.yahoo.com — Morning Bid: Inflation relief gives bonds little reprieve
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