- Shares in Asia fell generally, and US share futures declined, as investors weighed mixed corporate reports and signs of a strong US economy, which underpin projections for higher interest rates.
- The region's stock index declined for a second day as benchmarks in Australia and South Korea dipped, while Japanese equities were flat and Chinese shares varied.
- Despite some signals of weakening, the US economy was little altered according to the Federal Reserve's monthly Beige Book assessment, which was issued on Wednesday. According to Fed's Williams, the current trend of reducing inflation continues, but price increases remain excessive. Traders are still betting on a rate hike next month.
- After jumping 5 bps to the highest level in a month, the yield on the policy-sensitive 2-yr Treasury note stayed flat in Asia.
- Bond yields in New Zealand fell alongside the currency after inflation statistics came in lower than expected. Once the government announced an assessment of the central bank, Australia's 10-yr yield remained unchanged.
- Following a flat day in New York trade, US equities futures fell. The CBOE VIX volatility index has dropped to its lowest level since 2021. A Bank of America global index of volatility, which includes equities, interest rates, currencies, and commodities, has reached its lowest level since early 2022.
