- The US dollar reached a one-month high as Treasury yields jumped and Asian shares fell following hawkish European Central Bank comments that pushed back against bets on early and broad rate reduction.
- The MSCI Asia Pacific Index fell 1.2%, the first drop in four sessions, while the Hang Seng Index is poised for its worst day in three months as property-sector funding plans damaged bank shares. European stock-index futures sank, extending the previous session's fall, while US futures were also down.
- In the first trading day since Friday, gold fell, as did Treasuries across the curve. Ten-year rates and policy-sensitive two-year debt both rose by about six basis points. Traders are now looking to Federal Reserve Governor Christopher Waller's speech later Tuesday to see if there would be more pushback against bets on a rate cut in March.
- "It's probably too soon to position for the next leg down in yields right now," said Amy Xie Patrick, Pendal's head of income strategies. Over the longer term, say six months or more, she believes yields will fall, but the immediate prognosis is less certain.