- Asian stocks traded mixed, with Chinese equities falling as the central bank net drained money from the banking sector. Treasuries continued to lose money. The yen plummeted to its lowest level versus the dollar since 2017.
- Japan and Australia advanced after reopening following the holiday. Chinese equities tumbled after the PBoC net drained short-term funds, raising fears about the financial system's support. Even though trade volumes remained small, US futures were little altered after the S&P 500 ended at a record.
- After increasing throughout the curve, benchmark treasury rates have levelled off. The 10-year note's yield exceeded 1.6% in the worst start to a year since 2009, as investors braced for Fed rate hikes in 2022. The yen fell versus all of its G-10 counterparts, falling to 115.63 against the dollar.
